Hi everyone,
I want to check if this book has a mistake – or if I’m just misunderstanding.
I just picked up a copy of “In This Economy?” by Kyla Scanlon
Not far into the book (page 6 – the first chapter) I encountered a sentence that puzzled me.
”When the Fed uses its tool kit to strengthen the dollar – meaning that you can exchange it for more money in foreign countries – there are geopolitical consequences! For example, a strong US dollar makes Chinese imports more expensive for American consumers and businesses – so Americans buy less stuff from China”
I’m confused here – isn’t this the other way around?
A stronger dollar means the same dollar amount can buy more Chinese goods – at a cheaper price.
At least this is my understanding.
Is this a mistake in the book – or have I missed something?
Is this an error in this economics book?
byu/starscientist inAskEconomics
Posted by starscientist