Finance, Forex and Investments

What is the difference between foreign investment and new money coming out of the central bank ?

Public Comments

1. foreign investment, also called (dirrect foreign investment DFI) comes from investors abroad. Banks, companies and other organizations such as the WTO give money to companies and governments abroad. This money is litteraly foreign (ie it is not meony that was generated by the production of the recieving country). In contrast a money printed by a cetral bank is money "created" by the government of a particular government and is thus domestic money. This money reflects, or should reflect in theory the production capacity of the country whos bank is printing the money. Obviously if they print too much money inflation wil result.