Doppio Giudici wrote:I was recommended to move my question here from the FTAAT.I just realized that if I backed my money with kilowatt hours, and it managed to slow down inflation....The rest of the world would keep trucking along with higher inflation then me.
Over the period of like 100 years, this would mean my currency would rise in value compared to others on my homeplanet.
Is there like a economic assistance thread? I think I accidentally made the cost of labor so much more costly compared to other nations, that no one would buy my exports. This is clearly why China keeps devaluing it's currency.
Should I be panicking about declining imports?
There are pros and cons for a strong and a weak currency, so it depends on how you want your currency to reflect the desired outcomes. For example, if you want your country to have cheaper industrial inputs and cheap imports, then get a strong currency. If you want your country to flood foreign markets with cheap goods or get more valuable foreign assets, then get a weak currency.