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What's the effect of devaluation ?​

User Scottmf
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Answer: Exports are cheaper to foreign customers. Imports more expensive. In the short-term, a devaluation tends to cause inflation, higher growth and increased demand for exports.

Devaluation can aggravate inflation. If this happens, the government may have to raise interest rates to control inflation, but at the cost of slower economic growth.

hope i helped

User MGOwen
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