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    Sufferr's Avatar
    Sufferr Posts: 1, Reputation: 1
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    #1

    May 26, 2016, 03:53 AM
    Why is export led growth not inflationary?
    Could someone please explain to me the reason as to why export led growth does not result in inflationary pressures? I can't seem to find an answer anywhere.
    Thanks.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
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    #2

    May 26, 2016, 05:56 AM
    Think about what causes inflation - it's too much money chasing too few goods in the domestic market, right? If economic growth is primarily due to exports, who's doing the buying?

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