If you had to pick one variable that contributes most to the value - TopicsExpress

If you had to pick one variable that contributes most to the value of a currency what variable do you think that is? "The determination of exchange rates in a floating exchange rate system is exceedingly complex. The international value of the dollar might be influenced by such factors as the demand for US assets, the US trade balance, US interest rates relative to those in the rest of the world, US inflation, and US growth relative to that in the rest of the world. So many factors are involved that no model has yet been developed that can reliably predict movements of exchange rates." neweconomicperspectives.org/2011/08/mmp-blog-11-modern-money-theory-and.html

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