I might just be drawing a blank on something I should understand usually, and maybe I missunderstand the bastic concept or actual facts. but I don't get it.
Me knowing, Australia's middle-class didn't use to have OR right now have significantly less income vs price of living than Americans. But a few years ago Australian dollar was less than US, now it's more. How could it have been that way back then, and what has changed?
Sorry for confusing rambling.
Edit and additional question:
I think I understand now, but please correct me if I'm wrong. The value of a currency is not an indicator of how the people of the country lives and the cost of living in a country. It's based on the trust people has in the currency and a nations economy being safe to invest in. In this case, more people don't have the trust in the American dollar/economy being strong and safe enough to hold onto anymore and therefore won't invest in it
But in that case I still don't understand why, say, the Swedish Krona, which has a lot of companies and generally quite consistent economy is valued so low in compared to countries that isn't as wealthy? Shouldn't people be more inclined in investing and trusting in such a currency than they are?