00:01
So there's a few ways to answer this question, right? we have this idea of the exchange rate.
00:06
The exchange rate is originally 100 yen per dollar and it's going to 80 yen per dollar.
00:18
What does this mean? it means that the dollar is depreciating by 20 % because the dollar buys fewer yen, right? it's used to buy a 100 yen but now it's only buying 80 yen.
00:38
So alternatively, you could say that the yen is appreciating, right, by 20 % because they're symmetric, right? so the other thing is the prices, right? we are going from $180 for u .s.
00:57
Goods to $200 for u .s.
01:03
Goods.
01:04
So how do we interpret that, right? u .s.
01:08
Prices are increasing here if you do the the arithmetic by 11%, right? 20 over 180 which is 1 over 9.
01:23
So u .s.
01:24
Prices are increasing by 11 % but u .s.
01:29
Dollars are getting 20 % cheaper, right? so here on net, right, u .s...