If restrictive monetary policy, that would lead to increase in rates..which would lead to increased investment in curency, which would lead to currency appreciating.. wouldnt that lead to increased imports over exports? Question I just ran into said increasing value of the dollar which would increase net exports. Can anyone rationalize this? THanks作者: former 时间: 2013-4-21 11:14
Restrictive Monetary Policy = consumption in the country decreases = aggregate demand decreases = Imports fall & net exports increase作者: bluejazzy 时间: 2013-4-21 11:15
But if we break it down, don’t interest rates rise, and that attracts investors which increases the currency??
