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Effects of a Currency Depreciation

Level:
A-Level
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 21 Mar 2021

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This revision tutorial video looks at some of the macroeconomic effects of a currency depreciation including the impact on the trade balance, economic growth and inflation. It includes an explanation of the J Curve and the Marshall Lerner Condition.

Effects of an exchange rate depreciation
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