Competitive Devaluation

Competitive devaluation in Global Commerce Policy

In this regard, competitive devaluation is: a government-induced depreciation or devaluation of the exchange rate aimed at undercutting the competition from other countries. The risk in doing so is that one ™s competitors may retaliate with their own devaluations and leave everyone worse off. See also beggar-thy-neighbour policies.[1]

Competitive devaluationin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Competitive devaluation” entry (OAS)

See Also