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Qaagi - Book of Why

Causes

Effects

Sri Lanka 's central bank has a long history of trying to resist interest rate increases by printing money and defending the currency and printing more money to offset currency purchases ( sterilized foreign exchange salestriggeringBOP crises

Many political eventstriggeredthe BOP crisis

a currency monetary base that does not shrink in line with outflows , when an exchange rate is defended ... because fresh money is printed to replace outflows ( sterilized foreign exchange sales(passive) are caused byBOP crises

But again the question iscausedthe BoP crisis

The Federal Reserve - fired bubble collapse in 2008/9createda BOP crisis

while exports fellleadingto BOP crisis

A weak trade deficitcould often triggera BoP crisis

Com | Forex , Pakistan Decline in foreign exchange reservesleadsto BoP Crisis

BOP crisis Increasing trade deficit , repayment of foreign debt obligation , and outflow of foreign investment funds and declining remittances , poor level of inflow of FDI and colossal import bills - settlementsare causingthe BOP crisis

developing countriescausingBOP crisis

eventually printing over 250 billion rupeesto createthe BOP crisis

perverse expectationscan triggera BoP crisis

the Gulf war(passive) actually triggered byThe BoP crisis

International oil and falling rupeehas createdBOP crisis

THE GOVERNMENT PRINTS MONEYWILL CREATEBOP CRISIS

import substitution measuresto preventthe BOP crisis

Capital flightcan triggera BOP crisis

Oil Shockleadingto BoP crisis

reforms in the exchange rates Steep devaluation was effected in early July 1991triggeredreforms in the exchange rates Steep devaluation was effected in early July 1991

to a sharp fall in INRledto a sharp fall in INR

to the 36.5 per cent rupee devaluation of June 1966leadingto the 36.5 per cent rupee devaluation of June 1966

in a more rapid depletion of foreign exchange reserves and makes the crisis more likely to occurresultsin a more rapid depletion of foreign exchange reserves and makes the crisis more likely to occur

to large scale defaultsleadingto large scale defaults

triggered capital flights and led to a collapse of the currencyresultedtriggered capital flights and led to a collapse of the currency

from the reduction of trade over the years even while external debt servicing costs have been soaringresultingfrom the reduction of trade over the years even while external debt servicing costs have been soaring

to objective of increasing farm production & export revenues New programmes to stabilise / support pricesledto objective of increasing farm production & export revenues New programmes to stabilise / support prices

to the 36.5 % rupee devaluation of June 1966leadingto the 36.5 % rupee devaluation of June 1966

to currency crashes , hyperinflation , corporate insolvency and properly market collapses across emerging market economiesleadto currency crashes , hyperinflation , corporate insolvency and properly market collapses across emerging market economies

due to spike in oil prices owing to Gulf Warscauseddue to spike in oil prices owing to Gulf Wars

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