When the models become more general and inclusive, a light shines even more brightly on just how confusing and contradictory the arguments favouring devaluations
Summary: There is consensus both within and outside Egypt that a devaluation
of the Egyptian pound is imminent.
The conclusion now, however, is that devaluations
are not having the same impact on GDP performance.
Angola's central bank is said to be planning for more currency devaluations
You also have to look at why devaluations
The primary incentive for the devaluation
is "international recognition".
2011) the crisis in the Euro area has brought fiscal devaluations
to the forefront of policy.
Monetary policy and impacts of a currency devaluation
-- which many are predicting as imminent -- can be bewildering, so Rebel Economy has prepared this explainer.
is reduction in the value of a currency with respect to goods, services or other monetary units with which the given currency can be exchanged.
Gylfason and Schmid (1983), and Conolly (1983) find that exchange rate devaluations
have a positive effect on the economy.
Therefore, the devaluations
of the Thai baht, the Indonesian rupiah and the Malaysian ringgit had an immediate and direct mechanical effect on the prices expressed in these local currencies.
The consortium successfully bid the equivalent of almost US$46 million in local currency just before the first Brazilian devaluation
on January 12, then paid the reduced price of $42 million days later, only to lose money on the currency's continued weakness as it ultimately finished down about 50%.
The paper addresses an important issue: Are devaluations
Major and continuous devaluations
of a nation's currency have long been a reality of the global economy, with the recent peso crisis in Mexico among the more newsworthy.
The sudden reduction of foreign credit to externally indebted countries requires an increase in trade balances, which governments achieve in part by real devaluations
of the debtor country currency.