Wednesday, October 28, 2009

Inflation?

I have $50 in my US Dollar paypal account. The current inflation rate of the US dollar is 2.5%. The inflation rate of the Japanese Yen is 0.4%. If I transfer the $50 to my japanese yen paypal account, how much would I expec to earn in 1 day? 1 week? 1 month? 1 year?



Inflation?

Whenever you convert money from one currency to another, fees are charged, so I doubt you could make any money.



Inflation?

the same amount, because the jappenese economy is at a different standpoint, and transfering will not do anything for you.



Inflation?

Their are alot more factors to look at than just the two inflation rates, and those rates seem qiute conservative most estimates i have seen for us inflation put it at an average of about 3.2-3.3 for quite a while now, and the japanese inflation is usually a bit negative due to their high inflation.



In addition to exchange rate fees exchange rates fluctuate to keep other things in balance so if you really want a projected rate of what you will make you would have to look at what the futures market for currency is doing depending on how long you would want to hold it currency futures can go as far as 10 years out, with such a small amount of money however transaction costs would definitly bring your earnings negative, and currency is an investment as is any other security so their is no guaranteed return, if thier were everyone would do it.

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