Changes

'''Devaluation''' is a [[government]] policy to dilute the value of its [[currency]], typically by printing more of it.  The reasons for this can include helping voters (like farmers) who are in debt by reducing the real value of their obligations, or helping the government itself pay back loans.

'''Devaluation''' is a [[government]] [[monetary policy]] to dilute the value of its [[currency]], typically by printing more of it.  The reasons for this can include helping [[voter]]s (like [[farmers]]) who are in [[debt]] by reducing the real value of their obligations, or helping the [[government]] itself pay back [[loans]] (see [[United States Treasury securities]] and the [[National debt]]). Sometimes devaluation is done to increase [[exports]] and decrease [[imports]], thereby reducing a balance-of-payments [[trade deficit]].

Sometimes devaluation is done to increase exports and decrease imports, thereby reducing a balance-of-payments trade [[deficit]].

When the [[Federal Reserve]] deliberately [[prints money]] (often a cause of [[hyperinflation]]) to cover a persistent [[budget deficit]] without borrowing, this may be considered a devaluation. A steady insidious process of [[inflation]] is not considered a devaluation, although if a [[fiat currency]] has a high level of inflation, its value will naturally fall against [[gold]], [[silver]] or foreign currencies.  

[[Category:Economics]]

[[Category:Economics]]