As inflation increases, currency depreciates if interest rates are lower than inflation rates and vice versa. However, typically as inflation increases, central banks increase interest rates to reduce consumption and decrease market prices. This leads to an appreciation of the currency as higher interest rates attract foreign investment as they demand the currency or supply their currency.
I intend to learn so much from this channel!
How much did you learn so far?
Who asked?
Thank you so much for this video. It's in such simple language. Could you recommend me a book/article explaining this issue?
What would you say is the relationship between inflation and exchhange rates?
As inflation increases, currency depreciates if interest rates are lower than inflation rates and vice versa. However, typically as inflation increases, central banks increase interest rates to reduce consumption and decrease market prices. This leads to an appreciation of the currency as higher interest rates attract foreign investment as they demand the currency or supply their currency.
sal saved my life
THank you m8
Very much interesting!
Can you please put Multivariable Calc exercises after the lessons/videos
Sir... What is exchange rate... That is what we want to know...
Salman rocks 🤙
Teacher, it’s pronounced Yoouaan. Not Woouann
Hey man i have an exam tommorow and I really need your help any ways to talk to you?
Khan academy website.
do what is resource flow I red the definition I still don't understand
👑