https://padlet.com/economics4/c0jiwsqo7mrg Write your thoughts and share en-us 2019-03-27 11:36:09 UTC 2021-07-11 13:13:21 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Growing.png jovan_banduka https://padlet.com/economics4/c0jiwsqo7mrg/wish/345662724 Inflation occurs when there is an increase in the general price level. Generally, a depreciation is likely to contribute to inflationary pressures because of higher import prices and rising demand for exports. If there is a fall in value of a currency then there will be an increase in the price of imported goods. Imports are significant to an economy therefore they will contribute towards cost-push inflation. Since there is a fall in value of the currency then the exports will become more competitive and hence there will be more demand for them, and this leads to demand-pull inflation. ]]> 2019-03-27 12:40:49 UTC https://padlet.com/economics4/c0jiwsqo7mrg/wish/345662724 https://padlet.com/economics4/c0jiwsqo7mrg/wish/345664895 Since the value of currency has fallen, the costs of producers will increase since more money will be needed to buy the same raw materials, for an example, for their production. Consequently, this will result in a cost-push inflation due to the producers increasing prices of their products proportionally to the cost increase. The second factor would be that because of the fall in the value of currency, more currency needs to be spent for the same items than before. This will result in more money circulated in the market which subsequently causes inflation. BY: Teodora, Myrsini, Luka and Ilija ]]> 2019-03-27 12:45:05 UTC https://padlet.com/economics4/c0jiwsqo7mrg/wish/345664895