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Do countries with high inflation rates appreciate or depreciate?
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Currencies of countries with high inflation rates tend to have forward discounts.why?
This question is based on the concept of interest rate parity between two countries. A country with a high inflation rate will have high interest rates as compared to other countries. this will make it's currency to depreciate against its trading partners hence the forward discount.
How does any currency appreciate or depreciate?
Three major factors that cause a country's currency to appreciate or depreciate relative to another's * Differences in income growth among nations will cause nations with the highest income growth to demand more imported goods. The heightened demand for imports will increase demand for foreign currencies, appreciating the foreign currencies relative to the domestic currency. * Differences in inflation rates will cause the residents of the country with the highest flation ratet to demand more imported(cheaper) goods. If a country's inflation rate is higher than its trading partners', the demand for the country's currency will be low, and the currency will depreciate. * Differences in real interest rates will cause a flow of capital into these countries with the highest available real rates of the interest. Therefore, there will be an increased demand for those currencies, and they will appreciate relative to the currencies of countries whose available real rate of return is low. By Mujeeb
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
Currencies of countries with high inflation rates tend to have forward discounts.why?
This question is based on the concept of interest rate parity between two countries. A country with a high inflation rate will have high interest rates as compared to other countries. this will make it's currency to depreciate against its trading partners hence the forward discount.
How does any currency appreciate or depreciate?
Three major factors that cause a country's currency to appreciate or depreciate relative to another's * Differences in income growth among nations will cause nations with the highest income growth to demand more imported goods. The heightened demand for imports will increase demand for foreign currencies, appreciating the foreign currencies relative to the domestic currency. * Differences in inflation rates will cause the residents of the country with the highest flation ratet to demand more imported(cheaper) goods. If a country's inflation rate is higher than its trading partners', the demand for the country's currency will be low, and the currency will depreciate. * Differences in real interest rates will cause a flow of capital into these countries with the highest available real rates of the interest. Therefore, there will be an increased demand for those currencies, and they will appreciate relative to the currencies of countries whose available real rate of return is low. By Mujeeb
Inflation rates?
inflation
Can an insurance company charge inflation rates?
Insurance company have premium rates, Not inflation rates.
What are the interest rates for a student loan?
The interest rates for a student loan are typically fixed at the annual inflation rate. This is true of that of the UK. Higher rates are typical in other countries.
Which year experienced lowest rate of inflation on 52 weeks average basis?
Different countries experienced different rates of inflation. This is a global site so you will need to be less insular.
What was inflation back in the 1900s?
Inflation was the same thing back then as it is now. Inflation rates were and are different in different countries, so the amount of inflation in each country is always different, depending on the solidity of the local currency. In Britain the inflation rate in 1900 was 4.5%. In the USA it was 16.9% but then fell to -2.4 the next year. Inflation rates in the US changed greatly from year to year and were often double-digit (but sometimes that was double-digit deflation)
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
What has the author Wanjoong Kim written?
Wanjoong Kim has written: 'Impacts of exchange rates on employment in three Asian countries' -- subject(s): Foreign exchange rates, Effect of inflation on, Unemployment
