Topic 9. Fisher effect by https://padlet.com/mariateresa1395/4qjtpswwyavmx53y en-us 2023-10-12 17:38:46 UTC 2023-10-12 17:48:41 UTC hello@padlet.com Home inflation and interest rate are higher compared to the foreign country. mariateresa1395 https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744024309
  • What implications would the IFE have regarding imports and exports?
    • Imports will increase; Exports will be reduced (trade deficit)
    • Should the national currency appreciate or depreciate?
    The degree of depreciation of the local currency will be equal to the inflationary differential.


    ]]>     2023-10-12 17:43:03 UTC https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744024309     Home inflation and interest rate are lower compared to the foreign country. mariateresa1395 https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744025472
  • What implications would the IFE have regarding imports and exports?
    • Imports will be reduced; Exports will increase (trade surplus balance)
    • Should the national currency appreciate or depreciate?
    The degree of depreciation of the local currency will be equal to the inflationary differential.


    ]]>     2023-10-12 17:43:54 UTC https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744025472     Home and foreign inflation and interest rate are similar. mariateresa1395 https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744027803
  • What implications would the IFE have regarding imports and exports?
    • Inflation does not affect the volume of imports and exports
    • Should the national currency appreciate or depreciate?
    Inflation does not affect the value of the local currency


    ]]>     2023-10-12 17:45:41 UTC https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744027803     What is the fisher effect? mariateresa1395 https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744031999 The Fisher effect is the perfect adjustment of the interest rate to the inflation rate. The relationship between money, inflation, and interest rates is named after Irving Fisher, an economist who first studied this relationship.

    ]]>     2023-10-12 17:48:35 UTC https://padlet.com/mariateresa1395/4qjtpswwyavmx53y/wish/2744031999