Explore BrainMass
Share

Effect of Inflation on Trade

A. How would a relatively high home inflation rate affect the home country's current account, other things being equal?

b. Is a negative current account harmful to a country? Discuss.

© BrainMass Inc. brainmass.com July 19, 2018, 3:33 pm ad1c9bdddf

Solution Preview

a. How would a relatively high home inflation rate affect the home country's current account, other things being equal?

ANSWER: A ...

Solution Summary

This posting explains the effect of inflation on the current account, it briefly answers whether a negative current account is harmful to a country.

$2.19