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Title: Explain what is meant by a devaluation of a currency. Under what circumstances would a country ... Post by: dillon_green23 on Oct 30, 2019 Explain what is meant by a devaluation of a currency. Under what circumstances would a country devalue its currency?
Title: Explain what is meant by a devaluation of a currency. Under what circumstances would a country ... Post by: RNIPP on Oct 30, 2019 In a fixed exchange rate system, a country faces a balance of payments deficit when the supply of its currency exceeds the demand at the fixed exchange rate. The country can lower the value at which the currency is pegged to increase its net exports; this is called a devaluation.
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