Inflow of deposits from abroad into a currency area due to – higher interest rates or – speculative expectations, especially: devaluation of the domestic currency or appreciation of the targeted currency. However, a permanent investment in the currency area is not intended (money that moves across country borders in response to interest rate differences or expectations of an exchange rate change, and that moves away when the interest rate differential disappears). – See cash deposit, carry trades, money home, low interest rate policy, exchange rate channel, interest rate differential.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/