1 dollar stands firmly against 1 hryvnia. Why? I am for the westernization of Ukraine. For the hryvnia to be strong 1 For Ukrainians, the main competitor is Russians 2 A strong army is good, but a strong currency is better 3 As a lawyer, I can develop legal services in Ukraine and Europe 4 In the UK, 75% of GDP is in the service industry
Well, let's be entirely clear, 1 US dollar equals about 28 Ukrainian hryvnia. The exchange rate has remained relatively very stable over the period of the last 6 years, not changing much. It's obvious the Ukrainian government is strongly trying to maintain stability of their currency relative to the dollar and prevent devaluation. That is a laudable accomplishment, given the state of Ukraine's economy, and the typical temptation in those type of situations to just print money. When you look further back at records of the exchange rate, you will see three periods of relatively flat plateaus, each lasting about 6 years. It's obvious that this is being artificially influenced and the result of government policy, probably attempts to maintain a relatively stable exchange rate.
Why is there no inflation and devaluation in the USA? Merkel said success consists, to paraphrase, in cooperation of london, berlin, paris, kiev and lviv
There are many arguments about that. Some claim there is. Some claim it gets "hidden", in certain ways, over time. We often see inflation in the lead up to economic bubbles, and rather than that inflation doing back down (deflation) when the bubble deflates, government policy can make it stay where it is, resulting in a ratcheting up effect of inflation, over many cycles. Government policy can turn transient inflation (which is not permanent) into permanent inflation. You won't necessarily observe that inflation while this is happening. Sometimes prices go up, but people argue about whether those price increases are caused by inflation, or if there are other factors. (thread here for example: Soaring Lumber Prices Add $36,000 to Cost of a New Home) That goes back to formulating a precise definition of inflation, how exactly to measure it, which is actually not easy. Even for smaller countries there can be currency exchange issues. Current currency exchange rates are not necessarily indicative of inflation rates, because as you try to transfer over the money in exchange, those rates are not static. (You might be able to convert 28 hryvnia to 1 dollar, but you will not able to convert 28 billion hryvnia to 1 billion dollars) Those exchange rates can reflect trade imbalances between those two countries, in addition to inflation levels.
Merkel says that because this "success" disproportionately benefits Germany's economy. Russia and the EU are reluctant to rely too much economically on each other, because they know both sides will try to use that reliance for political leverage. When you entangle your economy with another nation, in some ways you also entangle control over your economy with that other nation. Typically smaller countries have more reason to engage in trade than much larger countries.
That's another complicated topic. I think those two things only have a little bit to do with each other.
I don't think we will see the hyrvnia slide against the dollar. As the dollar inflates, the Ukrainian government will be all too happy to let the hyrvnia inflate with the dollar. In fact it's challenging for them to keep the hyrvnia from inflating and holding the exchange rate steady to the dollar.
Not your fault. Language difficulties can make it difficult for you to understand complicated subjects and technical economic issues. It is a language translation issue. I can try to use more basic language words if you want. That might help make it a little easier. I realise English is not your first language.
Probably there is some truth to this. Germany does not want the Soviet Union to form again. They do not want Russia to get too much control on these surrounding countries, like they did in the past.
Maybe this is not bad? Let England, Germany and France crush Poland, Ukraine and Russia. Maybe then Europe is more developed?
