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You want to devalue your currency to make your good cheaper then competitors. Keeping your currency low increases demand for your products and creates jobs and economic growth.
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∙ 12y ago
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Why would a Country like to devalue its currency?
A country would want to change its currency value, so it would lessen its world wide debt, and that lots of migrants can come into their country
Why do governments devalue their currency?
Governments devalue their currency to make debt repayment less costly. Devaluation causes inflation which hurts the value of existing bonds including Government Bonds (e.g. USA Government Treasury Bills). So the government pays back debt in dollars that are worth less. Also, the inflation increases nominal tax revenue that hurts the nation's comsumers as savings is destructed.
What can the government do to reduce balance of payment deficit?
Devalue currency to make import costilier and export more profitable also short term borrowing for immediate requirements.
What does devalue mean?
Devalue means to reduce the value.
What is the synonym for devalue?
depriciate
How would you put devalue in a sentence?
Because of the economic situation, the government decided to devalue their currency.
A government may its currency to correct its balance-of-payments conditions?
devalue
What is one alternative to a currency crisis?
One alternative to a currency crisis or to continuing to try to support a fixed exchange rate is to devalue unilaterally.
Why would a Country like to devalue its currency?
A country would want to change its currency value, so it would lessen its world wide debt, and that lots of migrants can come into their country
What fiscal policy can be enacted to boost exports?
By devaluation of currency exports of a country can be increased because when we devalue currency our products become cheaper for foreigners and they purchase more of them. A loose fiscal and monetary policy will help in increasing the exports of a country.
Why do governments devalue their currency?
Governments devalue their currency to make debt repayment less costly. Devaluation causes inflation which hurts the value of existing bonds including Government Bonds (e.g. USA Government Treasury Bills). So the government pays back debt in dollars that are worth less. Also, the inflation increases nominal tax revenue that hurts the nation's comsumers as savings is destructed.
What would happen if Spain left the euro?
They would again be able to devalue their own currency, a capability they do not have with the euro. This would let them better control their own economy.
What can the government do to reduce balance of payment deficit?
Devalue currency to make import costilier and export more profitable also short term borrowing for immediate requirements.
What is the effect if the cause is congress printed more currency?
If Congress printed more currency, the immediate effect would be an increase in the money supply. This could lead to inflation as there would be more money chasing the same amount of goods and services. Additionally, it could potentially devalue the currency and erode purchasing power.
What does devalue mean?
Devalue means to reduce the value.
Does candy devalue religion?
No.
What is the synonym for devalue?
depriciate
