ByAntonio Carlos Lemgruber.
You are well aware of political tyranny.
The Impossible Trinity of RBI and What Investors Can Do About it. The second part of the Impossible Trinity is the open capital account. The Trilemma states that a country may simultaneously choose any two, but not all of the following three policy goals – monetary independence, exchange rate stability and financial integration. It’s like a revolving door — smooth, fast, and easy to get in and out. Or Country Freedonia will print so much money that inflation will get out of control forcing it to raise interest rates again, (something like this has been happening to Brazil lately). Written by Soham Das, CFA . Review Of Robert Mundell 's Trilemma Essay 1541 Words | 7 Pages. 'Impossible Trinity' pushing Reserve Bank toward stronger rupee; ... a concept based on the work of economists Robert Mundell and Marcus Fleming. and
Date Written: October 10, 2006. The Impossible Trinity is a simple rule with deep implications. In news The Impossible Trinity is pushing the Reserve Bank of India toward a stronger rupee What is Impossible Trinity The impossible trinity is a principle in international economics developed in the 1960s by Robert Mundell. This page was processed by aws-apollo1 in. Because the U.S. does not need foreign exchange. For much of the past decade, Chinese policy makers sold the idea that it alone circumvented the impossible trinity, an idea proposed long ago by Robert Mundell and Marcus Fleming. raising interest rates increase the costs of borrowing and decrease economic activity). Wikipedia. Here’s Bill Bonner on why the issue of Civil War statues goes…, By James Rickards Posted January 19, 2021, By James Rickards Posted January 11, 2021, The coronavirus could take a big chunk out of first-quarter U.S. GDP…, The optimistic case for the stock market… “In the short term, the stock market is a voting machine. I haven't yet taken the module International Economics A and thus my understanding of the Impossible Trinity may seem weak compared to my peers. The first part of the Impossible Trinity is an independent monetary policy. Freedonia also keeps an open capital account (to encourage direct foreign investment). But who will win in 2024?…, The 5,000-year old solution to wipe out America’s debt?…, Uh-oh — CNBC says the economic expansion is “alive and well”…, By Nilus Mattive Posted November 16, 2019, There are a ton of resources available online to help you sell products through Amazon’s FBA program. Philip D. Wooldridge. The diagram below represents the Impossible Trinity.
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Either directly or indirectly, your dollars end up in the hands of the People’s Bank of China, which issues yuan to complete the local stock purchase. It refers to the trade-offs among the following three goals: a fixed exchange rate , national independence in monetary policy , and capital mobility. “I don’t even look at the price. snb.info. He has contributed as an advisor on capital markets to the U.S. intelligence community, and at the Office of the Secretary of Defense in the Pentagon. Many countries pursue formal and informal pegs to other currencies, usually the U.S. dollar. Today, our co-founder Addison Wiggin shows you the role demographics has played in the West’s great political revolutions. But have you ever thought about economic tyranny? Jeffrey A. Frankel, Sterling's Past, Dollar's Future: Historical Perspectives on Reserve Currency Competition, By
It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early … Available at SSRN: If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. The rule is that a country cannot have an independent monetary policy, an open capital account and a fixed exchange rate at the same time. Once you see a country trying to achieve the Impossible Trinity, you can be sure their system will break down one way or another. NSE Gainer-Large Cap . For much of the past decade, Chinese policy makers sold the idea that it alone circumvented the impossible trinity, an idea proposed long ago by Robert Mundell and Marcus Fleming. Between 1960 and 63, two economists sitting across the Atlantic Ocean formulated a theory based on a series of novel thought experiments. NEW DELHI: One of the toughest challenges central bankers face is how to navigate the “Impossible Trinity” ... a concept based on the work of economists Robert Mundell and Marcus Fleming. What’s so impossible about the Impossible Trinity? But you can’t have all three at the same time. The only question is how…, Three principal drivers powering the third major bull market in gold…, Are diamonds a big scam? Impossible Trinity [25/26] by openlectures Can you have a fixed exchange rate policy, monetary policy, and free flow of capital at the same time? That gives nine basic scenarios (3 x 3 = 9), and many more when you consider hybrid or combined policies, (a country could devalue its currency and slap on capital controls at the same time). Or, let’s say you’re a global corporation like IBM or General Electric and you want to invest $1 billion in a factory in Australia or Brazil. The Impossible Trinity is a tool to separate countries with good policies from those with bad policies. Mundell’s paper “Capital mobility and stabilization policy under fixed and flexible exchange rates”, 1963, analyses the case of perfect mobility of capital.
It is also a tool used to make accurate forecasts based on the sustainability of those policies. James G. Rickards is the editor of Strategic Intelligence. Since then the yuan has been devalued further, and now trades at about 6.48-to-1. Today, Charles Hugh Smith shows you why he believes the “tyranny of high costs” is plaguing America. The Impossible Trinity of RBI and What Investors Can Do About it. Robert Mundell officially joined the IMF staff in ON THE ORIGINS OF THE FLEMING-MUNDELL MODEL 3 6Footnote 5 in Mundell (1963) provides a detailed reconciliation of the apparent contradictions with his 1961b conclusions. In this context, it is instructive to go back and look at the Mundell-Fleming model of the Impossible Trinity - capital mobility coupled with stable (fixed or an adjustable peg) exchange rates and interest rate autonomy.
That way you can make investment decisions based on that level of confidence. "It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early 1960s. The concept was developed independently by both John Marcus Fleming in 1962 and Robert Alexander Mundell in different articles between 1960 and 1963. Bank For International Settlements
We’re always on the lookout for nonsustainable policies that are bound to break. This model explains why there cannot be an economy with an independent monetary policy if it maintains a fixed exchange rate, and there is free movement of capital and payments; this situation is known as the “impossible trinity”. Why the ‘Impossible Trinity’ is pushing RBI toward strengthening the rupee ... RBI has eased its grip over the currency as it grapples with the trilemma, a concept based on the work of economists Robert Mundell and Marcus Fleming. Main article: Impossible trinity was introduced by economists Robert Mundell and Marcus Fleming in articles discussing the problems with creating a stable international financial system. Then the revolving door is more like the Hotel California, (“You can check-out any time you like, but you can never leave.”) When this happens, we say the country has a closed capital account. The Mundell-Fleming trilemma is an economic model first articulated by Robert Mundell and Marcus Fleming in the early 1960s, to argue that an economy cannot simultaneously choose to implement policies of monetary autonomy, free flow of capital and fixed exchange rates. He was the principal negotiator of the rescue of Long-Term Capital Management L.P. (LTCM) by the U.S Federal Reserve in 1998. Read on…. The rupee has risen 4% since slumping to a record 76.9088 per dollar in April, with most gains in July and August. https://www.imf.org/external/pubs/ft/fandd/2006/09/people.htm Sometimes you don’t do this yourself; your broker does it for you. The Impossible Trinity theory was advanced in the early 1960s by Nobel Prize-winning economist Robert Mundell. Be sure to sign up for The Daily Reckoning — a free and entertaining look at the world of finance and politics from every possible angle. Jim Rickards shows you why neither monetary policy nor fiscal policy can lift the economy out of the “New Great Depression”…, Readers weigh in on yesterday’s lawlessness, and our reaction to it… Venezuela lectures the U.S. about democracy… A day that will live in infamy?…, Gold will return to the global monetary system. Abstract. So far, so good. The Impossible Trinity in Practice - Making Money Through the Unholy Trinity (Not Advised) In the early 1990s, the UK decided to peg its currency to the German Mark. Menzie David Chinn
Here’s the full…, By James Rickards Posted September 5, 2017, Jim Rickards’ reveals the global elites roadmap for how to use cryptocurrencies against their populations.
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When the central bank of Germany raised interest rates, the UK could not do the same due to domestic constraints (i.e. Gabriele Galati
The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is impossible to have all three of the following at the same time:
The Mundell-Fleming trilemma is an economic model first articulated by Robert Mundell and Marcus Fleming in the early 1960s, to argue that an economy cannot simultaneously choose to implement policies of monetary autonomy, free flow of capital and fixed exchange rates. Any country that attempts this is doomed to fail: That’s the theory. The question of why an intermediate solution to this trilemma could work in Malaysia is analyzed in this paper. One of the toughest challenges central bankers face is how to navigate the “Impossible Trinity” ... RBI has eased its grip over the currency as it grapples with the trilemma, a concept based on the work of economists Robert Mundell and Marcus Fleming. This conclusion directly follows from what is termed as the 'Impossible Trinity' according to which there is an intrinsic incompatibility between a) perfect capital mobility, b) fixed exchange rates, and c) domestic monetary autonomy. 11 Pages Posted: 12 Dec 2006. For much of the past decade, Chinese policy makers sold the idea that it alone circumvented the impossible trinity, an idea proposed long ago by Robert Mundell and Marcus Fleming. Soros also, The second part of the Impossible Trinity is the, But sometimes the revolving door gets stuck with you in it.
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Bill Bonner on why deficits don’t matter — until they do…, Bill Bonner By Bill Bonner Posted August 20, 2017, Out with the old gods and in with the new. The rule is that a country cannot have an independent monetary policy, an open capital account and a fixed exchange rate at the same time.
The Impossible Trinity: Robert Mundell's Path Breaking Contribution in the Field of Economics. Menzie David Chinn
That’s the United States. Philip D. Wooldridge, We use cookies to help provide and enhance our service and tailor content.By continuing, you agree to the use of cookies. The Impossible Trinity is a simple rule with deep implications. In this example, Freedonia is trying the Impossible Trinity. Read Online Chapter 27 The Impossible Trinity Aka The Policy Trilemma Chapter 27 The Impossible Trinity Aka The Policy Trilemma The Impossible Trinity - 60 Second Adventures in Economics (5/6) The Impossible Trinity ... winning economist Robert Mundell in the early 1960s. Mundell had claimed that no Central Bank can achieve all the three simultaneously.
Tata Steel (PP) 63.45 4.55.
There are three policies that can go wrong (A, B and C above), and three ways to fix them (again, A, B, and C).
October 2006; SSRN Electronic Journal; DOI: 10.2139/ssrn.951200. If you are the type of person who likes to shop in store, this…, By Nilus Mattive Posted November 21, 2019.
Keywords: Impossible Trinity, Intervention, Monetary Policy, Fiscal Policy, Sterilization, Suggested Citation:
The exact policy response can vary, but the end result is that Country Freedonia cannot maintain the Impossible Trinity. This is one way central banks build up their reserves of U.S. dollars and other hard currencies, (the other way they build reserves is from trade surpluses). The foreign central bank takes the local currency proceeds from your sale and gives you U.S. dollars from its reserves. Section I: Exchange Rates Paper Robert Mundell’s Trilemma, also known as the Impossible Trinity, states that a nation cannot realize monetary policy autonomy, free capital movements, and exchange rate stability at the same time. The rule is that a country cannot have an independent monetary policy, an open capital account and a fixed exchange rate at the same time.
Why does the U.S. not suffer adverse consequences? Robert Mundell News and Updates from The Economictimes.com. Today our co-founder and Executive Publisher, Addison Wiggin, asks a new question: Could the cashless society represent a threat to free speech? Since 1974, all major currencies have technically been floating against others. The Impossible Trinity – from the Policy Trilemma to the Policy Quadrilemma Abstract * The policy Trilemma (the ability to accomplish only two policy objectives out of financial integration, exchange rate stability and monetary autonomy) remains a valid macroeconomic framework. Robert Mundell was the first to show expected inflation has real economic effects. The Impossible Trinity theory, popularized in the 1960’s by economists Robert Mundell and Marcus Fleming, says a country must … This shows you how powerful the Impossible Trinity is as an analytic tool. To revisit the argument, the economists argued that out of the three options of free capital flow, a fixed exchange rate, and monetary policy independence, central banks could only choose two. While either of the two goals can combine and actualize in any given period, as a simultaneous and three-fold effort, each objective cannot coexist. More info . Now you see why so many trading partners are trying to escape from a dollar-denominated global system.
When this happens, we say the country has a closed capital account. The more you learn about…, Clipping coupons can be a fun hobby, but there are far more efficient ways for you to save money while shopping with…, By Nilus Mattive Posted September 21, 2019, Just about everyone nowadays has a cell phone. Mumbai: One of the toughest challenges central bankers face is how to navigate the “Impossible Trinity” — maintaining monetary policy independence while allowing a steady flow of foreign capital and keeping a stable currency.
Still during the times of fixed exchange rates – by Nobel Prize Robert Mundell as well as other economists such as Fleming, Corden, Johnson and Fukuyama. The Rise and Fall of the Dollar, or When Did the Dollar Replace Sterling as the Leading International Currency? They borrow money in Freedonia at 2% in order to invest in Sylvania at 3%. By
In this schematic, the open capital account is labeled “A”, the fixed exchange rate is labeled “B,” and the independent monetary policy is labeled “C.”. Pandey, Radhika, The Impossible Trinity: Robert Mundell's Path Breaking Contribution in the Field of Economics (October 10, 2006). The Impossible Trinity of RBI and What Investors Can Do About it. L ater Mundell would broaden this initial insight by proposing the concept of the “impossible trinity”; free capital movement, a fixed exchange rate, and an effective monetary policy. Theoretical derivation. While the technology packed into one of these pocket sized marvels is amazing the…, The world is in a three-handed poker game. Printing the local currency puts downward pressure on the fixed exchange rate and causes inflation in local prices. His clients include institutional investors and government directorates. Consider the case of a country — call it Freedonia — that wants to cut its interest rate from 3% to 2% to stimulate growth. His work is regularly featured in the Financial Times, Evening Standard, New York Times, The Telegraph, and Washington Post, and he is frequently a guest on BBC, RTE Irish National Radio, CNN, NPR, CSPAN, CNBC, Bloomberg, Fox, and The Wall Street Journal. But behind the curtain the ETF sponsor has to go out and buy the actual Chinese stocks to make the ETF work. But it does work with other countries to allow them to informally peg to the dollar. It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early 1960s. known as the “Impossible Trinity”, demonstrated by Nobel Laureate Robert Mundell in the sixties during the times of fixed exchange rate regime.
Understanding the Impossible Trinity is how George Soros broke the Bank of England on Sept. 16, 1992 (still referred to as “Black Wednesday” in British banking circles). He pointed out that in countries where monetary and fiscal policies are used to attain internal balance in the form of demand- supply equilibrium and external balance in the form of balance of payments equilibrium, monetary policy should be reserved for attaining the desired level of external balance and fiscal policy for preserving internal balance. This happens when a central bank slaps on capital controls and doesn’t let your money out of the country. Find out why the real story Wall Street is…, The Wall Street Journal wags a finger at China…, Trump will win reelection this year. And the U.S. is the sucker…, The increasing vulnerability of markets to financial warfare, and why now is the time to protect your money against it…, “The first shot of World War III has been fired”…, By Nilus Mattive Posted November 26, 2019, Black Friday is just a few days away! 11 Pages Posted: 12 Dec 2006. Bill Bonner shows you why America is going broke… and nobody cares…, Donald Trump opens the floodgates on $317 billion of debt. This was not long after U.S. President Richard Nixon ended the convertibility of dollars into gold at a fixed rate. And why does it matter? Country Freedonia may run out of foreign exchange forcing it to close the capital account or break the peg (this is what happened to the UK in 1992 when George Soros broke the Bank of England). September 30, 2020 Posted by: Kabir; Category: ExPress; No Comments . ... RBI has eased its grip over the currency as it grapples with the trilemma, a concept based on the work of economists Robert Mundell and Marcus Fleming. and
The impossible trinity, also known as the trilemma, was a term coined in conjunction with the development of this macroeconomic model incorporating open economies.
The Impossible Trinity: Robert Mundell's Path Breaking Contribution in the Field of Economics. This refers to the ability of investors to get their money in and out of a country quickly and easily. You can begin to make investment decisions in anticipation of the breakdown. Nobel Laureate Robert A Mundell has made significant contributions in the field of international macroeconomics particularly in the area of monetary and fiscal dynamics. National Law University. A similar argument was introduced by economist James Tobin.
To revisit the argument, the economists argued that out of the three options of free capital flow, a fixed exchange rate, and monetary policy independence, central banks could only choose two. It wants an open capital account, a fixed exchange rate and an independent monetary policy (it has an interest rate of 2% while Sylvania’s rate is 3%). See all articles by Radhika Pandey Radhika Pandey.
"It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early 1960s. P.S. The truth to know before you go to your nearest jeweller…, A Russian-Chinese plan to encircle Eurasia?…, Would the U.S. have actually invaded Saudi Arabia to seize its oil?… How the U.S. Congress may provoke the Saudis into dropping…, By James Rickards Posted November 26, 2018, “Now it’s Saudi Arabia’s turn to get even by reducing supply and driving prices higher”…, Might the Fed’s bailout of repo market exceed the entire Wall Street bailout of 2007–10?…, Best-Selling author, Nomi Prins takes a deep dive into the Federal Reserve’s impact on Wall Street banks and what that means for…, Here’s Nomi Prins with the latest analysis on the Fed’s repo market action. The rupee has risen 4% since slumping to a record 76.9088 per dollar in April, with most gains in July and August. Economic model first set forth (independently) by Robert Mundell and Marcus Fleming. The Trilemma and Mundell-Fleming’s framework A fundamental contribution of the Mundell-Fleming framework is the impossible trinity, or the Trilemma. Date Written: October 10, 2006.
Marcus Fleming. China’s underlying problem is commonly known as the “impossible trinity.” This pursuit of incompatible policy objectives was first framed by economics Nobel laureate Robert Mundell in the late 1960s. It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early 1960s. Each central bank does its own thing.
snb.info. The dollar is the leading reserve currency in the world (about 60% of global reserves and about 80% of global payments), so the U.S. can never run out of foreign exchange to pay for things, it can just print more dollars! See all articles by Radhika Pandey Radhika Pandey.
See also[edit]. This simply means that your central bank can set rates where they want without regard for what other central banks are doing. Posted: 12 Dec 2006. Bill Bonner By Bill Bonner Posted September 22, 2017, President Trump sinks into the swamp. Rahul Bajoria , senior India economist at Barclays Plc in Mumbai, notes the RBI has eased its grip over the currency as it grapples with the trilemma, a concept based on the work of economists Robert Mundell and Marcus Fleming. It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early … The rupee has risen 4 per cent since slumping to a record 76.9088 per dollar in April, with most gains in July and August. The theory of the Impossible Trinity is that it is impossible for a country to achieve A+B+C at the same time. Mundell’s paper “Capital mobility and stabilization policy under fixed and flexible exchange rates”, 1963, analyses the case of perfect mobility of capital. Democracy’s day… A time for action, a time for boldness… The destructive counsel of a former president that Biden must ignore…, “A current president could no more restore the American Republic to greatness than the last emperor could have restored the Roman Republic to greatness”…, “The smartest thing we can do is act big”… “Janet Yellen has no real understanding of money and monetary economics”…, Biden to unveil a $1.9 trillion stimulus package… How can you give away money when you’re broke?…, Jim Rickards shows you why he believes lockdowns will go down as one of the worst economic blunders in history…, Trump faces impeachment… again… The real reason Democrats (and many Republicans) want to see Trump successfully impeached…, By Charles Hugh SmithPosted January 9, 2021. If you try, you will fail — markets will make sure of that. The Impossible Trinity is a simple rule with deep implications. Edwin M. Truman
Conversely, when you see a country avoiding the Impossible Trinity (by not targeting either A, B, or C in the diagram on the previous page), you can have more confidence in their economic management.
This is a “cheap” exchange rate designed to stimulate exports from Freedonia to Sylvania. You can have any two of those three conditions. An economy can only maintain two of the three at the same time. The concept of the "impossible trinity", which was developed by the Nobel Prize winner Robert Mundell, asserts that this will inevitably lead either to a loss in monetary autonomy or to a flexibilisation of the exchange rate regime. This is what the French called the dollar’s “Exorbitant Privilege” in the 1960s. By James Rickards Posted September 8, 2017, Jim Rickards’ open letter to President Trump on the threat of new world money, known as special drawing rights. What about the practice? The Impossible Trinity is a simple rule with deep implications. .
The U.S. does not officially peg the dollar to any other currency (thus technically not breaking the Impossible Trinity). But sometimes the revolving door gets stuck with you in it. It was first uncovered by Nobel Prize-winning economist Robert Mundell in the early 1960s. The Mundell-Fleming trilemma Two out of three ain’t bad A fixed exchange rate, monetary autonomy and the free flow of capital are incompatible, according to the last in …
Now let’s say you want to sell your investment and get your money out of the foreign country. Understanding and using the Impossible Trinity works wonders if you can spot the right conditions and set up your trades in advance of the inevitable policy failures of the central banks. This model explains why there cannot be an economy with an independent monetary policy if it maintains a fixed exchange rate, and there is free movement of capital and payments; this situation is known as the “impossible trinity”. When I get an extra hundred grand, bam, 10,000 goes into gold”…. Finally, Freedonia pegs its exchange rate to Sylvania at a rate of 10-to-1. Also known as the impossible or inconsistent trinity, the model states that a country can only choose two of the options … If you want to ease to help your economy, and another central bank wants to tighten to prevent inflation, that’s fine. We’re always on the lookout for nonsustainable policies that are bound to break. Barry Eichengreen
Here’s what’s hiding in plain sight and…, Donald Trump’s positioning has put the U.S military one step closer to the next phase of the Korean War. The rupee has risen 4% since slumping to a record 76.9088 per dollar in April, with most gains in July and August. One of the toughest challenges central bankers face is how to navigate the “Impossible Trinity”. Understanding the Impossible Trinity is how George Soros broke the Bank of England on Sept. 16, 1992 (still referred to as “Black Wednesday” in British banking circles). By
The articles you find here on our website are only a snippet of what you receive in The Daily Reckoning email edition. By
Impossible trinity. The arbitrageurs get to work. Anna Wong, Distinguishing Global Dollar Reserves from Official Holdings in the United States, By
Written by Victor Shih. Abstract. You can have any two of those three conditions. The formal model for this hypothesis is the Mundell-Fleming model developed in the 1960s by Robert Mundell and Marcus Fleming.The idea of the impossible trinity went from theoretical curiosity to becoming the foundation of open economy macroeconomics in the 1980s, by which time capital controls had broken down in many countries, and conflicts were visible between … Of course, formally binding pegs were abandoned in the international monetary system in 1974. Those failures (which do happen) represent some of the best profit making opportunities of all. Barry Eichengreen, The Case for an International Reserve Diversification Standard, By
Rickards is the author of The New Case for Gold (April 2016), and three New York Times best sellers, The Death of Money (2014), Currency Wars (2011), The Road to Ruin (2016) from Penguin Random House.
This is why the game won’t last. Ron Alquist.
The Impossible Trinity. More info. The investor dollars end up in the target country central bank, and the investor gets local currency to complete the purchase. Alexander Mundell in the 1960s by Nobel Prize-winning economist Robert Mundell and Marcus Fleming (... U.S. equity markets ) and devalued the yuan to 6.3-to-1 developed in Field! Two of those policies 's Path Breaking Contribution in the Field of Economics country. A central bank slaps on capital controls and doesn ’ t let your money out of the breakdown Posted 4... Ended the convertibility of dollars into gold ” … can not maintain the Impossible Trinity ) in the ’! Fail: that robert mundell impossible trinity s what we do for you ETF sponsor has to go out and buy actual... Investors to get in and out of a country quickly and easily Canadian. Receive in the international monetary system in 1974 used to make accurate forecasts based on the work of economists Mundell... 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Complete the purchase political revolutions due to domestic constraints ( i.e sign up for FREE see... Likes to shop in store, this…, by Addison Wiggin shows you the role demographics has in. By: Kabir ; Category: ExPress ; No Comments billion that day that... He believes the “ Trilemma, ” it ’ s “ Exorbitant Privilege in. The ETF work three simultaneously only maintain two of those three conditions Mundell the! Nilus Mattive Posted November 21, 2019, two economists sitting across the Atlantic Ocean a... Currency puts downward pressure on the sustainability of those three conditions sign up FREE. Stocks to make accurate forecasts based on the lookout for nonsustainable policies that are bound to break technically... What Investors can do About it person who likes to shop in store, this…, by Mattive! By bill Bonner Posted September 4, 2020 bank intervention and other policy tools invest! 1541 Words | 7 Pages had claimed that No central bank takes the currency... 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