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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

excessive short - term inflowswill causehigh currency appreciation

Dollar debt deflationshould causesignificant currency appreciation

higher and more persistent capital inflows , money creation and stronger inflationary pressureswill ... resultin real currency appreciation

Net capital inflows allowed an increase in foreign exchange reserves in most of the past ten years ; more recently , they have also been encouraged by high interest ratescontributingto the real currency appreciation

Such a fall ... have been expectedto resultfrom real currency appreciation

by the spending effect(passive) caused bythe real currency appreciation

have been expectedto resultfrom real currency appreciation

short - term inflowsleadingto real currency appreciation

a current account deficitcausesreal currency appreciation

by spectacular increases in world prices for minerals and energy commodities(passive) caused bya real currency appreciation

spectacular increases in world prices for minerals and energy commodities(passive) caused bya real currency appreciation

wise have been expectedto resultfrom real currency appreciation

by inflows of foreign exchange as a result of oil and gas sales(passive) can be caused bythe strong currency appreciation

by international commodity price inflation(passive) caused bythe real currency appreciation

man(passive) was invented byCurrency Money

a central bank can doto causea domestic currency appreciation

These capital flows are saidto causeundesirable currency appreciation

some have arguedcausesundesirable currency appreciation

large foreign capital inflowsleadto currency appreciation

markets , ... in the case of China , real appreciation via inflationcausingcurrency appreciation ( or

investor confidence in and demand for its currency ... in turnwill leadto currency appreciation

foreign capital inflowshave contributedto currency appreciation

The currency inflowsleadto currency appreciation

Application to Australia In a country with a floating currency , such as Australia , the benefits of a fiscal devaluationwould leadto a currency appreciation

the rising of currency purchasing power in turnleadsto currency appreciation

concern over foreign capital inflowshave contributedto currency appreciation

Higher capital inflowshave resultedin currency appreciation

by the currency crisis(passive) caused byThe currency appreciation

This will increase the demand for the currency of that countrycausinga currency appreciation

market expectations of further monetary tighteningare promptingcurrency appreciation

the currency increasesleadingto currency appreciation

However , the third impact of the policy , increased budget deficits and government borrowing , increases real interest ratesresultingin currency appreciation

Higher foreign inflowsmay also leadto currency appreciation

foreign capitalresultsin currency appreciation

by the currency crisis mechanism(passive) caused bythe currency appreciation

by the currency crisis mechanism(passive) caused by The currency appreciation ...

by the currency crisis mechanism (passive) caused byThe currency appreciation

by the currency crisis mechanism (passive) caused by The currency appreciation ...

by the currency crisis mechanism (passive) caused bycurrency appreciation

by the currency crisis mechanism (passive) caused by On the currency appreciation

to the return on the bond portfoliosto contribute stronglyto the return on the bond portfolios

alsomay ... contributealso

to lower inflation over the medium termmay also contributeto lower inflation over the medium term

losses(passive) caused bylosses

problems for Swiss exporterswas causingproblems for Swiss exporters

in a loss of inevitably resultsin a loss of

in a loss of competitiveness for the domestic manufacturing inevitably resultsin a loss of competitiveness for the domestic manufacturing

the private sectoris influencingthe private sector

in such things as $ 22 hamburgers in Sydneyhas resultedin such things as $ 22 hamburgers in Sydney

from an increase in themay resultfrom an increase in the

to industrial declineleadingto industrial decline

the deficitscausedthe deficits

to inflation in the exporting countryleadingto inflation in the exporting country

to import inflationleadingto import inflation

domestically produced goods and servicescausesdomestically produced goods and services

to a currency warcan leadto a currency war

from inflation of the money supplyresultingfrom inflation of the money supply

in growing trade surplusesresultedin growing trade surpluses

alsoresultsalso

in some casescan ... resultin some cases

from unsustainable macroeconomic disequilibria within the member countriesresultingfrom unsustainable macroeconomic disequilibria within the member countries

to a huge fall in import priceshas ledto a huge fall in import prices

to less exports and domestic goodswill leadto less exports and domestic goods

the growth in inflation(passive) was causedthe growth in inflation

to higher export priceswill leadto higher export prices

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

more quicklycontributedmore quickly

to rapid growth in Chinese commodity pricescontributedto rapid growth in Chinese commodity prices

to lower import prices , which has a direct effect on reducing inflationcontributesto lower import prices , which has a direct effect on reducing inflation

by making domestic goods relatively more expensive than imported goodscan leadby making domestic goods relatively more expensive than imported goods

to a decrease in import price ( P M ) of its good and serviceswould leadto a decrease in import price ( P M ) of its good and services

to inflation , which then leads to an increase in the costs associated with property value , such as electricity billsmay leadto inflation , which then leads to an increase in the costs associated with property value , such as electricity bills

to a loss of competitiveness and in some cases external deficitledto a loss of competitiveness and in some cases external deficit

to the decline in feed use of coarse grains in the five countriescontributedto the decline in feed use of coarse grains in the five countries

Forex reserve book losses(passive) caused byForex reserve book losses

a " decline in fuel prices and imported productswould causea " decline in fuel prices and imported products

to a decline in the relative price of imports compared to domestically produced goodsleadingto a decline in the relative price of imports compared to domestically produced goods

to a large wealth transfer to foreign holders of dollar denominated assets , which should be addressed through transition policywill ... however ... leadto a large wealth transfer to foreign holders of dollar denominated assets , which should be addressed through transition policy

alsocontributedalso

export competitiveness(passive) caused byexport competitiveness

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Smart Reasoning:

C&E

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