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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

negative shocks to the domestic economyresultin a real exchange rate depreciation

An increase in domestic money supplywould causedepreciation in real exchange rate

nominal devaluationresultsin real exchange rate depreciation

the non - traded - goods marketsresultingin real exchange rate depreciation

a rise in Home non - traded productivityshould leadto real exchange rate depreciation

in the long runleadsto real exchange rate depreciation

10causesreal exchange rate depreciation

a negative shock ... non - tradables sectorsshould resultin real exchange rate depreciation

inflation ... likelyto causea depreciation in the exchange rate

inflation itself ... likelyto have contributedto exchange rate depreciation

Such an increase in the liquidity is expectedto causedepreciation in the exchange rate

a short - term decrease in dollar supplyledto depreciation of the exchange rate

capital to flow out of the countryresultingin exchange rate depreciation

the reduced inflow of capital from exportscausesa depreciation of the exchange rate

their capitalleadto a depreciation of the exchange rate

the interest rate ) which is likelyto leadto an exchange rate depreciation

to decrease their exchange rate exposureleadingto exchange rate depreciation

The governmentcan leadto an exchange rate depreciation

the inflationresultedfrom exchange rate depreciation

inflationresultingfrom the depreciation of the exchange rate

by non - monetary factors(passive) caused bycurrency depreciation

to exchange rate movement in whichcausesexchange rate depreciation

a monetary expansionleadsto a depreciation of the exchange rate

likelyto causea depreciation in the exchange rate

A fall in interest ratecausesdepreciation of exchange rate

the USleadsto exchange rate depreciation

imports ... in turnwill leadto a depreciation of the exchange rate

the economy - wide inflation shockresultingfrom the exchange rate depreciation

Deficitleadsto depreciation of the exchange rate

_ exportscausesa depreciation of the exchange rate

Usually a rise in the current account deficitwill leadto an exchange rate depreciation

the countryresultingin exchange rate depreciation

rate movement in whichcausesexchange rate depreciation

the rise in inflationcausescurrency depreciation

capital outflowswould resultin currency depreciation

capital outflowswould causecurrency depreciation

importsresultingfrom depreciation of the exchange rate

to riseleadingto exchange rate depreciation

a fall in output in the USwould leadto a depreciation of the exchange rate

spending on net exports ... speculationcausesan exchange - rate depreciation

to runaway inflationledto runaway inflation

to a decrease in exportswill leadto a decrease in exports

to inflation pressureleadingto inflation pressure

to improvement in fiscal balanceleadingto improvement in fiscal balance

in a less than 10 % rise in the price - levelcan resultin a less than 10 % rise in the price - level

from trade liberalizationresultsfrom trade liberalization

losses(passive) caused bylosses

to productivity growthcontributesto productivity growth

in higher prices for goods , prohibitively higher interest rates , and a politically crippling consequence which would hold much danger for the economyresultedin higher prices for goods , prohibitively higher interest rates , and a politically crippling consequence which would hold much danger for the economy

to problems in the Finnish banking sectorhad actually contributedto problems in the Finnish banking sector

to depreciation in real exchange rateleadsto depreciation in real exchange rate

imported goods(passive) caused byimported goods

to depreciation in real exchange rate in the short runleadsto depreciation in real exchange rate in the short run

a decline in the price of non - trade - able goodshas causeda decline in the price of non - trade - able goods

to high domestic inflationleadingto high domestic inflation

to imported inflation and hence a deterioration in the terms of trade , a decline in real income and a weakening of consumptionleadsto imported inflation and hence a deterioration in the terms of trade , a decline in real income and a weakening of consumption

to a rise in inflationledto a rise in inflation

to a larger rise in the value of foreign currency assets than foreign currency liabilitieswould leadto a larger rise in the value of foreign currency assets than foreign currency liabilities

to lower export prices paid byleadsto lower export prices paid by

in more supply of foreign products in domestic marketsmay resultin more supply of foreign products in domestic markets

from an increased supply of currencyresultingfrom an increased supply of currency

to a currency crisisleadingto a currency crisis

in a currency crisiscan resultin a currency crisis

a surge in inflation , higher interest rates , and a declinecauseda surge in inflation , higher interest rates , and a decline

to inflationleadsto inflation

in inflationresultsin inflation

inflationcausesinflation

the inflation(passive) caused bythe inflation

the domestic interest rate to risemay causethe domestic interest rate to rise

exports to rise and imports to fallcausesexports to rise and imports to fall

to a temporary boost in exports ... but reduced growth in total outputleadsto a temporary boost in exports ... but reduced growth in total output

in higherwill resultin higher

to capital flightcan leadto capital flight

export to rise and imports to fallcausesexport to rise and imports to fall

to rising external debtleadingto rising external debt

to higher import pricespotentially leadingto higher import prices

to instability of confidence and capital outflowscan leadto instability of confidence and capital outflows

a fall of the financial situations , the stock market , and exchange ratecausinga fall of the financial situations , the stock market , and exchange rate

demand for exports to rise , increasing prices in local marketcan causedemand for exports to rise , increasing prices in local market

net exports to risecausesnet exports to rise

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Smart Reasoning:

C&E

See more*