Timeline for Can an appreciating currency lead to inflation?
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| May 12, 2021 at 7:50 | vote | accept | Tomahawk | ||
| May 7, 2021 at 5:12 | review | Low quality posts | |||
| May 7, 2021 at 9:11 | |||||
| May 7, 2021 at 5:07 | comment | added | Giskard | @timuzhti I see your meaning, I was thinking more about the indirect effect of the change in the exchange rate. Without additional details on the reasons behind the change, it is impossible to grasp the general picture, which is why I write "wrong/vague". | |
| May 7, 2021 at 5:01 | comment | added | timuzhti | I don't see the wrongness with saying "If the INR is appreciating it possibly means that there is a high demand" then. Price increases clearly have the possible antecedent of increased demand. | |
| May 7, 2021 at 4:58 | comment | added | Giskard | @timuzhti I never wrote anything to the contrary. (I only outline the final step, as it was not stated how or why the demand function shifted.) | |
| May 7, 2021 at 4:57 | comment | added | timuzhti | I don't really see the issue. Demand increases -> Qd increases -> Price increases -> Qd decreases to an equilibrium. | |
| May 6, 2021 at 22:13 | comment | added | Giskard | 2. "one cannot say for sure if the rupee is over or undervalued. the market will decide." If the rupee appreciates that literaly means the market decided it was undervalued. | |
| May 6, 2021 at 22:12 | comment | added | Giskard | 1. "it will demand for rupee will continue to be greater than supply" I never wrote anything to the contrary. | |
| May 6, 2021 at 21:07 | comment | added | Randor | if the rupee is appreciating vs the USD , then it could be because speculators see that the rupee is undervalued vs the USD and so it will demand for rupee will continue to be greater than supply and so it will continue to increase until speculators view it as having reached a 'fair' value. In short, what i am saying is that the poster's reasoning is possibly correct, one cannot say for sure if the rupee is over or undervalued. the market will decide. | |
| May 4, 2021 at 13:58 | vote | accept | Tomahawk | ||
| May 4, 2021 at 14:01 | |||||
| May 4, 2021 at 6:45 | history | answered | Giskard | CC BY-SA 4.0 |