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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 749 |
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To that end, many countries use currency devaluations as a means to achieve national economic and social goals(ie: slimming trade deficits, boosting exports,increase of domestic employment).
Some countries with persistent devaluations often end up with large trade deficits
and weak currencies, while countries with strong currencies such as Switzerland and Japan have strong currencies and trade surpluses...
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Countries such as China and Taiwan have large trade surpluses but their coinage is not considered stable currency. The U.S. dollar is considered a world currency, and is used to trade by many countries. Despite this fact, the U.S. has had a trade deficit for over a quarter of a century.
A significant danger is that by increasing the price of imports and stimulating greater demand for domestic products, devaluation can aggravate inflation...
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