Abstract

This article redefines and explains some fundamental economic principles related to asset prices, notably inflation and exchange rates. One wonders why the rates may “decide to settle at a certain level”, or blow the minds of the most learned professors and shoots over the roof. In this paper, we explain the how the triple factors of economics, political and social fundamentals shape the behaviour of asset price dynamics especially in developing countries. In conclusion, the paper emphasised the role of these fundamentals in bringing about sanity and stability which are initial conditions needed for progress and prosperity.

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