In theory, tariffs imposed by a country can lead to currency appreciation if they improve trade balances by reducing demand for foreign goods and foreign currency; conversely, if tariffs lead to economic slowdowns, they may erode investor confidence, causing capital outflows and currency depreciation.

Authors

• Person: Ramu Thiagarajan, Jennifer Bender, Michael Metcalfe Organization: State Street
  The price of protectionism: Understanding the economic tradeoffs of ...

Sources

• The price of protectionism: Understanding the economic tradeoffs of ... www.statestreet.com Ramu Thiagarajan, Jennifer Bender, Michael Metcalfe · State Street via serper

Referenced by nodes (2)

• tariff concept
• trade balance concept