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I don't understand why this was downvoted. It's pretty basic economics here by at least two mechanisms: - when the money leaves the country, it reduces the mon
by malandrew 7y ago
I don't understand why this was downvoted. It's pretty basic economics here by at least two mechanisms:
- when the money leaves the country, it reduces the money supply so less money is chasing goods and services like labor, thereby mitigating inflation.
- when money leaves the country, it reduces the demand for that country's currency, increasing the buying power of visitors from other countries when they are in Bali.
That said, the magnitude of the importance of these two effects is debatable.