This blog compiles the thoughts of UCLA undergraduates on the connections between economic history and current events. All contributors to this blog are enrolled in Ec183, The Development of Economic Institutions in the United States. The premise of this course is the history matters. The careful application of economic theory and quantitative reasoning can help us understand the past.
Monday, November 28, 2011
How to Profit when the Dollar Falls:
During the Great Depression, people profited from the declination of the value of the dollar by speculating against the dollar; meaning before the dollar was re-evaluated, they traded their cash in for gold, and if the dollar value fell, they profited. Well people can profit off of the dollar falling even today through trading ETFs that trade in currency. http://online.wsj.com/article/SB10001424053111903327904576524512233323804.html?KEYWORDS=US+interest+rates
Labels:
Currency,
Dollar Value,
ETFs,
Exchange rates
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