Appreciation/Depreciation As an economist, you know that when a country depreciates its currency, initially its competitiveness in the world markets increases You also know that currency appreciation...

Appreciation/Depreciation

As an economist, you know that when a country depreciates

its currency, initially its competitiveness in the world markets increases You

also know that currency appreciation improves the prospects of foreign

investments which will likely increase GDP The head of state has turned to you

for your wise council Why would you be reluctant to advise that your country

increases its money supply?