Originally posted by Tingkai
If inflation increases, people move money overseas, but that pushes down the value of the local currencies. If the economy is highly reliant on imports, inflation could increase.
Also, increased outflows of money, in and of itself, do not necessarily put downward pressure on inflation.
If inflation increases, people move money overseas, but that pushes down the value of the local currencies. If the economy is highly reliant on imports, inflation could increase.
Also, increased outflows of money, in and of itself, do not necessarily put downward pressure on inflation.
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