are they the same?
CFAI states:
if Current account surplus(deficit), then currency will appretiate(depretiate)
Schweser sates:
if Savings/Investment surplus(deficit), then currency will depretiate(appretiate)
Confused.
are they the same?
CFAI states:
if Current account surplus(deficit), then currency will appretiate(depretiate)
Schweser sates:
if Savings/Investment surplus(deficit), then currency will depretiate(appretiate)
Confused.
I think there is little diff
Current surplus mean exp > import -> demand (from foreigner importers) for the currency > supply for the currency --> currency appreciate
Saving > investment --> local interest rate decrease --> currency depreciate…
Current account deficit and Savings-Investment gap are the same.
This is an accounting identity in Economics.