currency devaluation
Deliberate monetary depreciation
Currency devaluation is a deliberate reduction in a nation's currency value relative to other currencies.
Governments devalue to make exports cheaper and imports more expensive, hoping to improve trade balances: The currency devaluation boosted manufacturing but raised prices on imported goods.
Distinct from depreciation, which happens through market forces rather than policy decision.
- exchange rateCurrency conversion value
- import substitutionDomestic production over foreign goods
- inflationSustained price level increase
- interest ratesPrice paid for borrowing
- capital flightRapid outflow of investments
bank run · worthless · monetary policy · central bank · fiscal policy · black market rate · trade deficit · gold standard · tariffs · economic collapse · quantitative easing · trade surplus · trade balance · printing · treasury · bailout · gold · hyperinflation
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- Latin American Economicsimport substitution, debt crisis, hyperinflation, foreign debt, export economy
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- Latin AmericaArgentina, Brazil, Chile, Mexico, Cuba
- economic crisisrecession, depression, collapse, downturn, contraction