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Economic Effects of an Appreciation
- Exports more expensive, therefore less UK exports will be demanded
- Imports are cheaper, therefore more imports will be bought.
- A fall in AD, causing lower growth
- Lower inflation because:
- import prices are cheaper
- Lower AD
- More incentives to cut costs
Essays and Revision Notes on Exchange Rates
Exchange Rates revision notes and essays
Factors influencing exchange rates
Determination of exchange rates in free markets
International Trade Revision Notes
Exchange Rate Essays
- Effects of a falling Dollar
- Why Dollar keeps falling
- Discuss Policies to Stop the Dollar Falling
- Does Devaluation Cause Inflation?