tag:blogger.com,1999:blog-2161094474017907793.post6470409960234007330..comments2021-07-15T02:02:11.105+01:00Comments on Controversy!: DeflationUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2161094474017907793.post-28867690522821319242009-05-24T19:36:30.407+01:002009-05-24T19:36:30.407+01:00Exports often contain imported materials so export...Exports often contain imported materials so exports may well be more expensive.<br /><br />BUT...if there is deflation then the deficit may be less (trade) and the exchange rate may rise.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2161094474017907793.post-8795608154120666772009-05-24T19:17:14.932+01:002009-05-24T19:17:14.932+01:00It seems that deflation leads to a fall in prices ...It seems that deflation leads to a fall in prices and so the exports should become cheaper. I don't understand why should exports be more expensive with falling exchange rates.<br /><br />It all depends on the extend to which other economies deflate and on the elasticity of exports and imports (martial-lerner condition)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2161094474017907793.post-37216907189914231522009-03-17T21:19:00.000+00:002009-03-17T21:19:00.000+00:00With low exchange rates imports are tend to be mor...With low exchange rates imports are tend to be more expensive because you will have to pay more your own currency to buy something, however if other countries also depreciate their value, imports wouldn't be more expensive and there might not be increase in exports. <BR/>I can't understand the connection between deflation and exchange rates =(. Could you explain in order to help me answer the last questionElvihttps://www.blogger.com/profile/14782148837079760316noreply@blogger.com