The 1:1 thing is psychology, but it's not really in question here. The important thing is relative movement. If today I can take $1 and buy ₽1 worth of Big Macs, great. But tomorrow, if I can take that same $1 and buy ₽2 or ₽4 worth of Big Macs, I get more Big Macs with that same dollar. That means the dollar has more buying power than the ruble.

[–] yogthos@lemmy.ml 7 points 3 weeks ago (1 children)

How is that at all relevant given that Russia doesn't trade in dollars though? Also, as a follow up question, do you think having a weak currency hurts or helps when you're a major commodity exporter?

[–] catloaf@lemm.ee 8 points 3 weeks ago (1 children)

You tell me, you're the one comparing them.

[–] yogthos@lemmy.ml 3 points 3 weeks ago (1 children)

I'm simply pointing out the idiocy here https://lemmy.ml/post/23076839

The reality is that Russians are not actually affected by this because pretty much nobody in Russia holds western currencies, and the domestic economy is largely self sufficient. The only context this matters in is trade, and Russia is a major exporter, which means that domestic revenue for the government goes up when rouble is weak. Hence why rouble gets intentionally depressed pretty much every years, and people always get really excited about it.

[–] Gloomy@mander.xyz 1 points 3 weeks ago (1 children)

Most, as you put it, "experts" point to inflation as a consequence, but I know shit about economics and don't know the mechanism behind it.

https://www.newsweek.com/what-does-rubles-sharp-fall-mean-russias-economy-1992933

[–] yogthos@lemmy.ml 2 points 3 weeks ago

They just state inflation would be an outcome without actually explaining how that would happen. It's pretty clear these people are just parroting things without understanding them.