00:01
If there is a substantial decrease in argentine inflation rates, we want to know what is going to happen to the demand for pesos, the supply of pesos, and the exchange rate for pesos.
00:10
And to do that, we're going to use this graphical representation of the foreign exchange market for pesos.
00:16
So because there's been this substantial decrease in their inflation rate that makes it more attractive to hold on to these dollars.
00:22
And that is so because all of a sudden they are becoming more valuable.
00:27
At the very least, they're becoming less, less, less valuable than they were with that high inflation rate.
00:33
So in which case, we're going to see both supply is going to decrease.
00:38
Again, because like i said, people want to hold on to this...