Finance & Development, June 1965
This paper analyzes the effect of rapid inflation on a country’s international position. The paper highlights that when prices and costs in any country rise rapidly, goods produced in the country soon become more expensive than similar goods produced abroad. Unless the exchange rate changes, this en...
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| Format: | eBook |
| Language: | English |
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Washington, D.C.
International Monetary Fund
1965
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| Series: | Finance & Development
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| Collection: | International Monetary Fund - Collection details see MPG.ReNa |
| Summary: | This paper analyzes the effect of rapid inflation on a country’s international position. The paper highlights that when prices and costs in any country rise rapidly, goods produced in the country soon become more expensive than similar goods produced abroad. Unless the exchange rate changes, this encourages imports and discourages exports. As prices in a country rise more rapidly than in the rest of the world, individuals in that country tend to turn from buying these increasingly expensive products of their own industries to the relatively cheaper foreign goods |
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| Physical Description: | 72 pages |
| ISBN: | 9781616352783 |