How the Value of Money Is Determined Who Decides How Much Money Is Worth

How the Value of Money Is Determined

Who Decides How Much Money Is Worth

How It Affects You

BY KIMBERLY AMADEO REVIEWED BY MICHAEL J BOYLE Updated May 22, 2020

Title reads: "3 ways to measure the value of a dollar:

1) exchange rates

2) the demand for treasury notes

3) the foreign exchange reserves"

Image shows a small bill being equivalent to 6 foreign coins, and then shows a visual implying that when the demand of large bills goes up and down, so does the demand for small bills. The last image is three administrative buildings from various foreign countries next to a stack of dollar bills.

The value of money is determined by the demand for it, just like the value of goods and services. There are three ways to measure the value of the dollar. The first is how much the dollar will buy in foreign currencies. That’s what the exchange rate measures. Forex traders on the foreign exchange market determine exchange rates. They take into account supply and demand, and then factor in their expectations for the future.

For this reason, the value of money fluctuates throughout the trading day.

The second method is the value of Treasury notes. They can be converted easily into dollars through the secondary market for Treasurys.

When the demand for Treasurys is high, the value of the U.S. dollar rises.

The third way is through foreign exchange reserves. That is the amount of dollars held by foreign governments.4 The more they hold, the lower the supply. That makes U.S. money more valuable. If foreign governments were to sell all their dollar and Treasury holdings, the dollar would collapse. U.S. money would be worth a lot less.

No matter how it's measured, the dollar's value declined from 2000 to 2011. That was due to a relatively low fed funds rate, a high federal debt, and a slow-growth economy. Since 2011, the U.S. dollar has risen in value despite these factors.5 Why? Most of the economies in the world had even slower growth. That made traders want to invest in the dollar as a safe haven. As a result, the dollar strengthened against the euro.

How It Affects You

The value of money affects you every day at the gas pump and the grocery store. Demand for gas and food is inelastic. Producers know you have to buy gas and food every week. It’s not always possible to delay purchases when the price rises. Producers will pass on any of their extra costs. You will buy it at the higher price for a while until you can change your habits.

Pulning qiymati qanday aniqlanadi?

Pul qancha qiymatga ega boʻlishini kim hal qiladi?

KIMBERLI AMADEO maqolasi MAYKL J BOYL tomonidan tasdiqlangan

2020 yil 22-mayda yangilangan

"dollar qiymatini o'lchashning 3 usuli mavjud:

1) valyuta kurslari

2) xazina(oltin zahirasi) kassalariga talab

3) valyuta zaxiralari"

Rasmda kichik kupyura 6 ta xorijiy tanga ekvivalenti, keyin esa katta valyutalarga talab oshsa yoki tushsa, kichik veksellarga talab ham muvofiq ravishda oʻzgaradi. So'nggi rasmda turli xil xorijiy mamlakatlardan uchta ma'muriy bino - bir qator dollarlik veksellar yonida joylashgan.

Pulning qiymati, xuddi tovar va xizmatlarning qiymati kabi, unga bo'lgan talab bilan belgilanadi. Dollar qiymatini o'lchashning uchta usuli mavjud . Birinchisi, dollar xorijiy valyutada qancha sotib olishi. Mana nimaga valyuta ayirboshlash darajasi oʻlchanadi. Valyuta bozoridagi Forex treyderlari valyuta kurslarini belgilaydilar. Ular talab va taklifni hisobga oladi , so'ngra kelajakda kutilayotgan hodisalarni hisobga oladi.

Shu sababli, pul qiymati savdo kuni davomida o'zgarib turadi.

 Ikkinchi usul - bu G'aznachilik notalarining qiymati . Ular G'aznachilikning ikkilamchi bozori orqali osongina dollarga aylantirilishi mumkin.

AQSh G'aznachiligiga (oltin yoki kumushiga) talab qancha katta bo'lsa, AQSh dollari qiymati shuncha ko'tariladi.

Uchinchi yo'l - valyuta zaxiralari orqali . Bu chet el hukumatlariga tegishli bo'lgan dollar miqdori.  Ular qancha ko'p bo'lsa, ta'minot shunchalik past bo'ladi. Bu AQSh pulini yanada qadrli qiladi. Agar xorijiy hukumatlar o'zlarining barcha dollarlari va G'aznachilik fondlarini sotishsa, dollar qulab tushishi mumkin . AQSh pullari ancha arzonroq bo'ladi.

Qanday qilib o'lchanmasin, dollar qiymati 2000 yildan 2011 yilgacha pasayib ketdi. Bunga mablag'lar stavkasi nisbatan pastligi , federal qarzning yuqori darajasi va iqtisodiyotning sust o'sishi sabab bo'ldi. 2011 yildan beri AQSh dollari ushbu omillarga qaramay qimmatlashdi.

Nima uchun? Dunyo iqtisodiyotining aksariyat qismi o'sish sur'atlari pasaygan. Bu savdogarlarni dollarga xavfsiz joy sifatida sarmoya kiritishni istashiga sabab bo'ldi. Natijada dollar evroga nisbatan mustahkamlandi .

Bu sizga qanday ta'sir qiladi

Pulning qiymati har kuni benzin nasosida va oziq-ovqat do'konida sizga ta'sir qiladi . Gaz va oziq-ovqat mahsulotlariga talab egiluvchan emas . Ishlab chiqaruvchilar har hafta gaz va oziq-ovqat sotib olish kerakligini bilishadi. Narx ko'tarilganda haridlarni kechiktirish har doim ham mumkin emas. Ishlab chiqaruvchilar har qanday qo'shimcha xarajatlarni o'zlariga hisobga olishadi. Siz odatlaringizni o'zgartira olmaguningizcha uni bir muncha vaqt yuqori narxda sotib olasiz.