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Determine the term - hot money
A large 'hot money' inflow shifts the demand curve for currency to the right, leading to exchange rate rising and to an overvalued exchange rate in terms of trading competitiveness of the country's exports. The current account of balance of payments is then about to deteriorate. If there is a shortage to start with, the deficit will grow larger. A large 'hot money' outflow will lead to opposite result.
what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?
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casual factors of traditional business cycle and its effects on the sectors of the economy
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