Economics B A-Level
Hot money flows
What Hot money flows means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Hot money flows
Check what you remember
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Reference: Pearson Edexcel
Flows of money into a country when its interest rates rise, increasing demand for the currency and causing it to appreciate.
Topics that use Hot money flows
- Exchange rates (Pearson Edexcel A-Level)
Related terms
- Appreciation
- Depreciation
- Effective exchange rate
- Index numbers
- International competitiveness
- Macroeconomic performance
- Exchange rate
Using Hot money flows in the exam
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