What does it mean /biz/ ?
What does it mean that the euro is now much closer to a dollar than years ago?
I'm trying to understand basics of economics and finance, and having a really really hard grasping this stuff. Does this chart mean the euro is gaining in value relative to the dollar? Does it mean it's losing value relative to the dollar? Aren't the numbers worthless anyway, since the 'actual' value is determined by purchasing power when buying goods and services?
It seems like it's all so highly interrelated and relative, that there is no starting to point to understanding this stuff.
Please halp.
>>1279747
>What does it mean that the euro is now much closer to a dollar than years ago?
It means € is losing its purchasing power.
>>1279747
Basically means if you live in the US you can buy more shit from the EU for the same amount of cost. Because the Euro is devalued.
EURO is weaker because of Quantitative easing (basically lowering your interest rates when they are already negative). lower interest rates means weaker currency. also, the US are putting their currency up - which means stronger currency.
$ stronger, EUR weaker.
>>1279752
>>1279781
thanks, this helps. back in 2009 I believe the euro was quite strong relative to the dollar, and I remember my parents encouraging me to spend money when I was on a trip through the US back then. It makes sense now I read your replies. So it's not that relevant locally though, is it?
For instance as a freelancer working in the eurozone but being paid in USD by american clients, do I end up winning or losing now that the euro is weakening?
>>1279747
How retard are u?
>>1279799
Euro was quite strong cause back then the US dollar was pure shit.
>>1279799
>For instance as a freelancer working in the eurozone but being paid in USD by american clients, do I end up winning or losing now that the euro is weakening?
depends how your payment is compared to the same job with european clients.
