The exchange rates matter for the specific case of global trade. If a country is primarily an importer then they want their currency to be strong, and if it’s an exporter than having a weaker currency is better. PPP applies more in terms of the internal economy of the country.
If a country is largely self sufficient then its internal economy isn’t going to be affected much by the value of the currency on the global market. This is precisely why Russian internal economy isn’t severely affected by the value of the currency on the markets.
I agree, I was trying to add to your point. The “you” in my comment is addressed to Westerners who seem to uncritically internalize whatever their reddit feeds tell them.
Sadly, uncritically parroting nonsense seems to be the dominant form of discourse. This stuff isn’t hard to understand if you spend even a few minutes to actually think through it, yet here we are.
The exchange rates matter for the specific case of global trade. If a country is primarily an importer then they want their currency to be strong, and if it’s an exporter than having a weaker currency is better. PPP applies more in terms of the internal economy of the country.
If a country is largely self sufficient then its internal economy isn’t going to be affected much by the value of the currency on the global market. This is precisely why Russian internal economy isn’t severely affected by the value of the currency on the markets.
I agree, I was trying to add to your point. The “you” in my comment is addressed to Westerners who seem to uncritically internalize whatever their reddit feeds tell them.
Sadly, uncritically parroting nonsense seems to be the dominant form of discourse. This stuff isn’t hard to understand if you spend even a few minutes to actually think through it, yet here we are.