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@Vox @amerika @h4890 @EvolLove @cjd @FourOh-LLC run your same model with zero gov't intervention. the same effect would happen. it has nothing to do with gov't involvement and everything to do with an over inflated price level. you currency inflates due to massive exports of that good (usually raw resources) causing your manufactured goods to be relatively too expensive, crushing that sector of you economy.

please read the link @amerika posted