If speculators expect a rising exchange to reverse itself we say that expectation is inelastic and speculation

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If speculators expect a rising exchange to reverse itself we say that expectation is inelastic and speculation stabilizing. In the reverse case we have elastic exceptions and destabilizing speculation. Why?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 28, 2024 01:12 AM

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If speculators expect a rising exchange to reverse itself we say that expectation is inelastic and speculation

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Heres the breakdown of why inelastic expectations lead to stabilizing speculation and elastic expect... View the full answer

Microeconomics An Intuitive Approach with Calculus

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