Countries with high trade decifit shouldn’t have low forex?
July 20th, 2008
binocular222 asked:
If EXIM so, lower forex will facilitate EX a bit but we will have to pay much more for imported goods. Is that right?
If EXIM so, lower forex will facilitate EX a bit but we will have to pay much more for imported goods. Is that right?
Moreover, lower forex means higher external debt. Therefore, countries with huge debt shouldn’t have low forex too?
In my country, both trade decifit and external debt are high but gov still keeps a stable nominal forex while inflation is escalating (which means REER decrease), why?
MCCLUNG