02.03.2016 - Is currency devaluation overrated?
A rip-roaring global debate is underway over whether currency devaluations are overrated as a means of enhancing national prosperity. An International Monetary Fund study suggests that between 1980 and 2014, a 10 percent depreciation by a country against the currency of a trading partner increased net exports by 1.5 percent of GDP. The bulk of the increase came in the first year after depreciation. The conclusion now, however, is that devaluations are not having the same impact on GDP performance...............................................Full Article: Source
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