morningtology

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how to devaluate money?

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why devaluate ? because it could make your currency more competitive. in other word, devaluation could make your export cheaper than any other country. as a consequence, it could also cause trade imbalance. especially with other countries that the currency is not competitive.

according to recent slate coverage about the currency war issue, there are various ways to devaluate money. first, government could devaluate its currency by print more money. second, government could devaluate its currency by buying another countries debt. there are many more complex strategy to devaluate money. but those two are the most effective strategy.

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Written by ardinusw

November 2, 2010 at 5:43 am

Posted in Int'l Politics

Tagged with , ,

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