THE GLOBAL EFFECTS OF INTERNAL AND EXTERNAL DEVALUATION ON EXPORT POTENTIAL Cover Image

THE GLOBAL EFFECTS OF INTERNAL AND EXTERNAL DEVALUATION ON EXPORT POTENTIAL
THE GLOBAL EFFECTS OF INTERNAL AND EXTERNAL DEVALUATION ON EXPORT POTENTIAL

Author(s): Martin Dimitrov
Subject(s): Economy, Public Finances
Published by: Стопанска академия »Д. А. Ценов«
Keywords: internal devaluation; external devaluation; national competitiveness; export

Summary/Abstract: The objective of this research is to assess devaluation (both internal and external) as a significant factor affecting national competitiveness by applying comparative analysis tools. The research paper consists of two major parts: the first one presents a systematization of macro-financial effects through international comparative analysis and provides arguments regardingthe consequences arising from the implementation of external and internal devaluation policies; the second part examines the dynamics of export as an indicator of post-crisis recovery, which is especially important for countries with open economies upon which external and internal devaluation may have tremendous effects. The conclusion reached as a result of the research states that attitudes unconditionally favouring the devaluation of a national currency as a major tool to support export seem unjustified and should therefore be approached by taking into account potential risks and negative effects.

  • Issue Year: 2015
  • Issue No: 1
  • Page Range: 43-55
  • Page Count: 13
  • Language: English
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