04.17.08
Capital Flow Chart
|
Interest Rate |
Capital Flows |
Demand for Currency |
Value of Currency |
Imports |
Exports |
|
↑
|
In |
↑ |
Appreciates |
↑ |
↓ |
|
↓
|
Out |
↓ |
Depreciates |
↓ |
↑ |
Remember, This chart does not work for Capital Flight or Trade Barrier Scenarios
Welker’s Wikinomics Blog » links for 2008-05-02 said,
May 2, 2008 at 11:47 am
[...] Capital Flow Chart « AP Economics A nice table from Econ teacher David Prudente illustrating the impact of changing interest rates on capital flows and exchange rates. (tags: interest rates, exchange economics,) Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages. [...]