Professional Documents
Culture Documents
Speculation
Stabilising
speculation
(a) Initial price fall
Stabilising speculation: initial price fall
P
S1
P1 a
D1
O Q
Stabilising speculation: initial price fall
P
S1
P1 a
D1
P2 b
D2
O Q
Stabilising speculation: initial price fall
P
S2
S1
P1 a
P3 c
D1
P2 b
D2 D3
O Q
Speculation
Stabilising
speculation
(b) Initial price rise
Stabilising speculation: initial price rise
P
S1
P1 a
D1
O Q
Stabilising speculation: initial price rise
P
S1
P2 b
P1 a
D2
D1
O Q
Stabilising speculation: initial price rise
P
S1
S2
P2 b
P3 c
P1 a
D2
D3
D1
O Q
Speculation
Destabilising
speculation
(a) Initial price fall
Destabilising speculation: initial price fall
P
S1
P1 a
D1
O Q
Destabilising speculation: initial price fall
P
S1
P1 a
P2 b
D1
D2
O Q
Destabilising speculation: initial price fall
P
S1
S2
P1 a
P2 b
P3 c
D1
D2
D3
O Q
Speculation
Destabilising
speculation
(b) Initial price rise
Destabilising speculation: initial price rise
P
S1
P1 a
D1
O Q
Destabilising speculation: initial price rise
P
S1
P2 b
P1 a
D2
D1
O Q
Destabilising speculation: initial price rise
P
S2
S1
P3 c
P2 b
P1 a
D3
D2
D1
O Q
Speculation
Exchange rate
speculation:
Stabilising speculation
(Initial depreciation)
Stabilising speculation
S1 S3
S2
er1
Exchange rate
er3
er2
D1
D2 D3
O
Quantity of £s
Speculation
Exchange rate
speculation:
Destabilising speculation
(Initial depreciation)
Destabilising speculation
S1 S2
S3
er1
Exchange rate
er2
er3
D1
D3 D2
O
Quantity of £s