Hey! Sign in to get help with your study questionsNew here? Join for free to post

Quick Question - relationship between inflation and exchange rate for Macro AS level

Announcements Posted on
Last day to win £100 of Amazon vouchers - don't miss out! Take our quick survey to enter 24-10-2016
    • Thread Starter

    Is there any correlation.
    When demand pull/cost push inflation occurs does this lead to a rise/fall in the exchange rate? I assume it rises, but am not clear and can find no clarification on this.

    If inflation occurs, it means that the country's international competitiveness will fall. Therefore, there will be less demand for the currency as less people want to purchase their products. The exchange rate will decrease.
Write a reply…


Submit reply


Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. Oops, you need to agree to our Ts&Cs to register
  2. Slide to join now Processing…

Updated: May 22, 2016
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Would you rather find

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.