--%>
Assignment Help - homework help

How is the exchange rate influenced by inflation

‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’

E

Expert

Verified

Because of the consequence on demand and supply of currency and the new equilibrium. It distinguishes among real and nominal values.

   Related Questions in International Economics

  • Q : Rise in the exchange rate-always good

    ‘The pound has enhanced today on the foreign exchange market’ is a general media comment whenever the pound sterling appreciates. When the pound appreciates is it always excellent news for business and the economy?’

    		•
  • Q : Survey regarding Trade policy Find a

    Find a recent survey about a trade policy issue and assess it, examining the structure of the questions and the target audience. Verify the sample size, assess the methods used to administer the survey and analyze results, identifying the confidence around the results

    		•
  • Q : International monetary system safeguard

    safeguard against the crisis of confidence in system explain

    		•
  • Q : Kind of exchange rate State which kind

    State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?

    		•
  • Q : International product life cycle I NEED

    I NEED TO UNDERSTAND MORE ABOUT International product life cycle

    		•
  • Q : Determinants of market market structure

    market structure and price-output determination

    		•
  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

    		•
  • Q : Wars that have an impact on Global

    I need an outline paper and a 15 page research paper double space on this topic. I have to provide at least 5 cited reports, but not limited to just 5 cites. Professor made comment below. The topic is too broad and I suggest that you focus on a war for which you can get enough economic data to

    		•
  • Q : International portfolio investments 5.

    5. What are the factors responsible for the recent surge in international portfolio investment?

    		•
  • Q : Describe balance of payment Accounts

    Balance of payment Accounts: It is the systematic record of all economic transactions among the residents of a country and rest of the world in a specified period (1-year) of time.

    		•