Lmaooo🤣🤣🤣🤣

bruh😭😭

econ rizz is crazy icl

Did you find that video ever?

@@lucasnardin4981 Can't really remember mate. Just think cons of higher IR would be a higher exchange rate. This is because a higher IR would attract more "hot money" from other countries which increases the demand for a currency thus pushing up the price (inflation). Pros would be higher return on savings and increased business confidence mayb (increasing IR shows signs of recovery on the economic cycle).

@@shaanmusa6473 For your con, remember that hot money increasing the value of a currency on the foreign exchange market doesnt directly effect general price levels in that country. A more reasonable effect would be that a stronger currency will reduce the demand for exports (as they are more expensive now) and increase the ability of domestic consumers to import goods from abroad. As AD consists of X-M this change will result in lower AD in the country, thus actually deflationary pressure

@@gozza1766 good point mate thanks. I guess the most significant factor is the competitiveness of your exports, and the effect it has on X - M.

@@gozza1766 good tip thank you

@Sarah Musheer Hussain Shaikh - 81629/TCHR/BKDC no

Thank you, Mama Noodle.

yeah i couldn’t find it either

It’s not at all. The evaluation will be very important if a 25 marker around monetary policy comes up.

both occur but exchange rates are based more off speculation than other aspects - but it still does occur - idk about long term though

Since the UK is an import heavy country, I think the result of the demand pull inflation increasing disposable income will further strength the value of imports that are coming into the country. Since hot money is a pretty niche concept I don't think the effect it has on the exchange rate will be as impactful as the demand pull inflation impact on the economy.

my spec is eduqas

If ur not an idiot and work like a wage slave fora month on economics before ur exam u can get an A ahah jus have to have a knack for economics but even if u don’t a C is perfectly doable remember grade boundaries are low asf

Yes, a C should be very doable if you put in the hours revising and try to understand each topic and how lots of things are connected etc.

@econplusdal stop deleting my comment not everyone’s traditional

yes i'm in the same situation, keep watching these videos and do one past paper per day, i think we can get a C

The “Cons” are the negatives of Exp Monetary policy, but the “evaluation” is the counterbalance to that negative effect.

Hot money outflows = increased supply of pounds being sold and decreased demand for pound = depreciated exchange rate = more exports and less imports = higher AD

@@hawksls3610 the point of worsening current account deficit will be contradicted though.

@@mattimakadsi What he said about AD wasn’t about the current account but yes, the current account would improve

I think that would fall into size of the rate cut

@@nadia2679 yeah

shush