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Depreciation and the external economy

Depreciation and the external economy

A currency depreciation reduces the foreign-currency price of exports and raises the domestic-currency price of imports. This tends to increase export demand and reduce import demand.

11.2.5 the effects of changing exchange rates on the external economy using Marshall-Lerner and J curve analysis Lesson

  1. Intl A Level
  2. /Economics
  3. /11.2.5 the effects of changing exchange rates on the external economy using Marshall-Lerner and J curve analysis

Step-by-step lessons on CIE Intl A Level Economics 11.2.5 the effects of changing exchange rates on the external economy using Marshall-Lerner and J curve analysis. Each one builds up to exam-style questions.

Lessons