While a strong currency is a possible cure for high inflation, it may cause higher unemployment due to the attractive foreign prices that result from a strong home currency.

Question

Quizplus · Accepted Answer

A strong currency means that the value of the currency is high, making imports cheaper and exports more expensive. This could lead to an increase in unemployment as domestic industries may not be able to compete with cheaper foreign imports, resulting in job losses.

While a Strong Currency Is a Possible Cure for High