Comprehensive overview of absorption in economics, covering its significance in national accounts and the implications of corporate mergers.
A detailed look at Adjustment Programmes, their historical context, types, key events, and their significance in curing balance-of-payments problems.
A balance-of-payments crisis occurs when a country’s foreign exchange reserves are rapidly depleting or maintained only through excessive foreign borrowing. Solutions may include policy changes, devaluation, or obtaining foreign loans.
Currency Devaluation is an intentional lowering of a currency’s value within a fixed exchange rate system, which can impact trade, economic growth, and inflation.
The J-Curve illustrates the initial negative impact of devaluation on the trade balance, followed by a gradual improvement as export volumes increase and import volumes decrease.
The Marshall-Lerner condition is a critical economic principle stating that a devaluation will improve a country's balance of trade if the sum of the price elasticities of demand for exports and imports (in absolute value) is greater than 1.
Revalorization of currency is the replacement of one currency unit by another, often done by governments in response to frequent or severe devaluation and high inflation rates. This article covers its historical context, types, key events, and implications.
Debasement involves reducing the precious metal content in coinage, thereby rendering a country's currency less valuable.
An in-depth explanation of Devaluation, its types, historical context, and its impact on the global economy.
