Devaluation is often used by countries to improve their current accounts. Since the current account equals national

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Devaluation is often used by countries to improve their current accounts. Since the current account equals national saving less domestic investment, however (see Chapter 13), this improvement can occur only if investment falls, saving rises, or both. How might devaluation affect national saving and domestic investment?

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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