Principles of Macroeconomics / Unit 13 MAC 1204 short lesson, about 20 seconds
Appreciation and Depreciation
Captions available
The idea
A currency appreciates, or strengthens, when it buys more of another currency. It depreciates, or weakens, when it buys less. One currency's appreciation is always another's depreciation.
In practice
If the dollar moves from 10 pesos to 12.5 pesos, it has appreciated and the peso has depreciated.
Where people slip
These words describe direction only. Neither carries a verdict.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics