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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

capital inflows which tendto causean appreciation of the currency

a sterilization of capital inflowsto preventcurrency appreciation

Strong capital inflowscan triggeran appreciation of the currency

the capital inflows associated with these transactions(passive) caused bycurrency appreciation

For instance , higher interest rates are expectedto causecurrency appreciation

higher interest rates + more demand for imports(passive) triggered bycurrency appreciation

a fully flexible exchange rate results in capital inflowscausingan appreciation of the currency

exchange ) market Increased demand for a currencywill leadto appreciation of currency

orderto preventappreciation of the currency

efforts by nations with a balance of payments surplusto preventcurrency appreciation

intervention by China and other emerging marketsto preventcurrency appreciation

dollar or have intervened heavilyto preventcurrency appreciation

foreign capital ... in turncausescurrency appreciation

differing interest rates(passive) caused bycurrency appreciation

a. Expectations of higher interest rates in the US Higher expected rates of return in the USwill causecurrency appreciation

the coronavirus pandemic(passive) caused bycurrency appreciation

to keep interest rates unchanged and accumulate reservesto preventappreciation of its currency

Export - Import : A country exporting more than importing from other countries , would result in higher demand for that currencycausingcurrency appreciation

RBI has been very cautious about this mattermay causecurrency appreciation

The BOJ should continue with both asset purchases and its negative interest rates policypartly to preventcurrency appreciation

Central banks could find themselves in a race to the bottom on interest ratesto preventcurrency appreciation

Higher export prices ... which tendsto triggercurrency appreciation

The principal aim of its policy for a long time has beento preventappreciation of its currency

to attract investors seeking higher yieldscausingcurrency appreciation

The BOJ should continue with both asset purchases and both asset purchases 's negative interest rates policypartly to preventcurrency appreciation

However , while the euro , the pound and virtually every other non - Asian currency have strengthened against the dollar in the past 12 months , Asian central banks have been interveningto preventcurrency appreciation

an increase of demand of domestic goods relative to the foreign goods , Tariffs and quotas , Export demand increase , Productivity and Demand of money(passive) is caused byAppreciation of a currency

economic stabilisation in the 1990s and a huge increase in commodity exports since then(passive) caused bycurrency appreciation

Exchange - rate management can be usedto preventcurrency appreciation

desirableto preventcurrency appreciation

the tendency of the policyto causean appreciation of the currency

thus interventionto preventcurrency appreciation

exchange rate interventionto preventcurrency appreciation

purchasing treasury billsto preventappreciation of its currency

the currency ... other countriescausesan appreciation of the currency

A rise in the domestic interest ratecausesan appreciation of the currency

that the central bank is interveningto preventcurrency appreciation

unsterilised interventionto preventcurrency appreciation

The exchange rate floorpreventedappreciation of the currency

the momenttriggerscurrency appreciation

deflation ... insteadmight createdeflation ... instead

deflation in the marketcausesdeflation in the market

a narrowing in the trade surplus , which pushed down international reservescauseda narrowing in the trade surplus , which pushed down international reserves

rupee excess liquiditycausingrupee excess liquidity

challenges for emerging sovereigns New York , October 28 , 2010createschallenges for emerging sovereigns New York , October 28 , 2010

problems to other tradable sectorsmay causeproblems to other tradable sectors

Japan 's long - term deflation and stagnationcausedJapan 's long - term deflation and stagnation

just 1.5 percent of that ... according to JP Morganhas contributedjust 1.5 percent of that ... according to JP Morgan

imported deflation exaggerating already severe disinflationary risks in their economiesto preventimported deflation exaggerating already severe disinflationary risks in their economies

7 % in the first half and we do n't expect it to continue at that ratecontributed7 % in the first half and we do n't expect it to continue at that rate

an inverted J - Curve effect states that for a depreciation of the currency to improve the balance of trade the sum of the price of elasticities of demand ( PEDs ) for imports / exports must be greater than 1 Business strategy that limits the risk that losses are made from changes in the price of currencies or commodities market where people and businesses can buy and sell contracts to buy commodities or currencies at a fixed price at a fixed date in the future the exchange rate of one currency against a basket of currencies of other countries , often weighted according to the amount of trade done with each country a currency that is shared by more than one country - the Euro Euro Area / Eurozone policies that increase the price of imports and/or reduce the price of exports in order to reduce the demand for imports and raise for exports to correct a current account deficit on the balance of payments polices that reduce the overall level of national income in order to reduce the demand for imports and correct a current account deficit on the balance of payments deepens economic integration from a customs union by eliminating non - tariff barriers to trade , promoting the free movement of labour and capital and agreeing common policies in a number of areas the deepest form of integration in which countries share the same currency and have a common monetary policy as result where economic integration results in high - cost domestic production being replaced by imports from a more efficient source within the economically integrated area limits agreed to public sector borrowing and the national debt for those EU countries that are part of the euro area elements of fiscal policy that cushion the impact of the business cycle without any need for corrective action by the govtcausesan inverted J - Curve effect states that for a depreciation of the currency to improve the balance of trade the sum of the price of elasticities of demand ( PEDs ) for imports / exports must be greater than 1 Business strategy that limits the risk that losses are made from changes in the price of currencies or commodities market where people and businesses can buy and sell contracts to buy commodities or currencies at a fixed price at a fixed date in the future the exchange rate of one currency against a basket of currencies of other countries , often weighted according to the amount of trade done with each country a currency that is shared by more than one country - the Euro Euro Area / Eurozone policies that increase the price of imports and/or reduce the price of exports in order to reduce the demand for imports and raise for exports to correct a current account deficit on the balance of payments polices that reduce the overall level of national income in order to reduce the demand for imports and correct a current account deficit on the balance of payments deepens economic integration from a customs union by eliminating non - tariff barriers to trade , promoting the free movement of labour and capital and agreeing common policies in a number of areas the deepest form of integration in which countries share the same currency and have a common monetary policy as result where economic integration results in high - cost domestic production being replaced by imports from a more efficient source within the economically integrated area limits agreed to public sector borrowing and the national debt for those EU countries that are part of the euro area elements of fiscal policy that cushion the impact of the business cycle without any need for corrective action by the govt

a rise in dollar interest ratescausinga rise in dollar interest rates

serious problemscan causeserious problems

in the appreciation of all Iraqi capital investmentswill resultin the appreciation of all Iraqi capital investments

goods to be relatively more expensive in other countries while depreciation would have a reverse effectcan causegoods to be relatively more expensive in other countries while depreciation would have a reverse effect

in lower prices of imported goodswould resultin lower prices of imported goods

in a tighter overall setting of monetary policywould actually resultin a tighter overall setting of monetary policy

export performancemay ... influenceexport performance

exports prices to move up and import prices to be cheapertriggeringexports prices to move up and import prices to be cheaper

from the Fed 's policyresultingfrom the Fed 's policy

a lot of heartburncausinga lot of heartburn

to higher profit margins through the import channel and imported inputs act as a natural means for hedging exchange - rate risksleadsto higher profit margins through the import channel and imported inputs act as a natural means for hedging exchange - rate risks

exports prices to go up and import prices to be cheapercausingexports prices to go up and import prices to be cheaper

an exchange rate volatilitywill causean exchange rate volatility

to preference for imported equipment Bhelmay leadto preference for imported equipment Bhel

from economic outperformance than during prior episodes of euro strengthresultingfrom economic outperformance than during prior episodes of euro strength

to a fall slowing inflationcould leadto a fall slowing inflation

the problems in manufacturing(passive) caused bythe problems in manufacturing

in increasing the import costsresultingin increasing the import costs

for examplemight promptfor example

to uncompetitive exports which leads to the decline of domestic industry – which leads to increased aid flows to address the stagnationleadsto uncompetitive exports which leads to the decline of domestic industry – which leads to increased aid flows to address the stagnation

to loss in competitivenessleadsto loss in competitiveness

to more foreign investmentleadsto more foreign investment

in overvaluationresultingin overvaluation

to operating profit growthalso contributedto operating profit growth

domestic inflation to fallusually causesdomestic inflation to fall

in limited benefits to the global economywill resultin limited benefits to the global economy

to a gradual shift in orders to other parts of the world T E Narasimhan & Vinay Umarjiis leadingto a gradual shift in orders to other parts of the world T E Narasimhan & Vinay Umarji

asset bubblesmay createasset bubbles

increase in import while discourages exportcausesincrease in import while discourages export

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Smart Reasoning:

C&E

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