please help me reply to these two students posts:

post 1

CAMILLE Dean posted Mar 14, 2024 12:17 AMSubscribe

Hey yall!

For this post, I read an article that discussed why we should be excited about our economy's future despite high inflation rates, slow economic growth, and wars in other countries.

Economic theorists project that China and India will be the largest contributors and generators of this year's estimated growth. They also believe that quite a few of our already advanced economies, like Canada, will experience an economic decline this year. The US is also projected to continue pushing through our current state of high inflation and interest. This is partially due to the majority of European banks changing their monetary policies which creates strain on imports and exports. As China and India are lower in economic stature, they will experience the greatest amount of growth, since they have more room to grow.

I do believe that I am impacted by the current economic status of the US, but I was unaware, until now, of how other countries played a role in that. The persuasion that the international economy has on all of the countries is very interesting.

The article gave me a better understanding as to why the US is still experiencing a tense economy while countries like China and India will experience more growth and ease. With areas like import and export trade being strained, I can see why it would set us back a tad. Especially when it's due to the monetary policies of other countries. The US can make changes where they're needed but cannot force other countries to be on par with us.

As of right now, my understanding is that we, as a collective, are doing what we can to correct our current economic status. The governments, of multiple countries, are doing what they can by implementing monetary policies to help assist.

Post 2:

Biana Heacock posted Mar 16, 2024 10:30 PMSubscribe

Hello everyone,

This week I read an article about Do Exchange Rates Fully Reflect Currency Pressures. This article educated me on FXI foreign exchange intervention. Current values are important to the financial sector and economy. When there is a currency market pressure most banks turn to FXI. Currency depreciations may increase the competitiveness of exports on international markets and drive up the cost of recurring payments on foreign-currency debt owed by governments and private firms. Currency depreciations also alter the value of domestic and foreign currency assets in investor portfolios, spurring wealth effects and inducing portfolio rebalancing. The government has to monitor and ensure inflation does not increase to the point our currency is devalued.