If inflation continued, the country's real exchange rate would appreciate, the demand for its exports would fall, unemployment would increase, and that would dampen wage and price pressures. Market participants, knowing this, would realize that inflation would not be sustained.
Bude-li inflace pokračovat, skutečný směnný kurz země se začne zhodnocovat, poptávka po exportu klesne, zvýsí se nezaměstnanost, což sníží mzdové a cenové tlaky.