Politicians do a lot of talking about money, but how much influence over currency do they actually have? The politics of currencies are a lot more intricate than the guy who happens to be running for office this year, and whatever grand plan he’s got. Currency rates and inflation go through a lot of changes — many different ups and downs — which don’t always reflect the political climates of individual countries. There’s no question that, up to a point, politics has an effect on the way we look at money and how much of it we get to spend.
Politics and Policies
Politicians do have the power, and opportunity, to introduce certain policies that could change the financial lives of millions. Tax rates, interest rates, government spending – these are the things that politicians have control over. The policies they propose and changes they make could change how much money you pay in taxes from year to year, how costly your mortgage is from month to month, even whether or not you receive help to pay for your prescription medications. In a much grander sense, politicians help to control currency itself.
Currency Rates and Inflation
Governments do exercise control over currency rates and inflation in their respective nations. The government has to place limits and control interest rates, tax rates and various aspects of the economy to keep the entire system from falling apart (though at time it seems that even this isn’t quite enough).
However, even when controlled, currency rates and inflation are ever-evolving entities. From day to day and year to year, the value of certain currencies change. For example, you may visit Canada one summer. By the next summer, the exchange rate for your American dollars will be different. Changing currency rates are one of the many factors that make the market tricky. Use UFX Markets Infographic on Currency Rates and Inflation to stay up-to-date on different market and economic trends. The UFX online banking system will provide you with current infographic information, so you can look at trends and statistics in visual charts and graphs.
Changing inflation rates affect the worth of currencies around the world. Very high inflation could decrease the value of currency, while low inflation could raise the value. The numbers aren’t so easy to track, but UFX markets infographic on currency rates and inflation make patterns easier to spot. Once you know how to spot the patterns, you can make smarter decisions when it comes to trading, selling, buying and investing in financial markets.