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Devaluation (view source)

Revision as of 23:48, April 21, 2007

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New page: 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...
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.

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