Currency Devaluation: Exports > Imports

Currency devaluation means a reduced value of currency with respect to foreign currencies and its reduced purchasing power to foreign goods, which result from monetary policy. In a small open economy, as such the assumptions of the Mundell-Fleming model, currency devaluation can result from expansionary monetary policy, referring to the lower exchange rate instead of … Continue reading Currency Devaluation: Exports > Imports

Currency Devaluation

Currency devaluation is a form of monetary policy in which it reduces the value of a currency with respect to those goods, services or other monetary units that the currency can be exchanged with. Currency devaluation can only be part of a hampered market with a central bank, “[since] the Bretton Woods system the US … Continue reading Currency Devaluation

EUROCRATS

In the news, the British Government is out of pocket millions on its tax collection duties since February, surrounding VAT and corporation tax. The blame of late payment notices are being send to businesses, yet it was the HMRC’s fault in changing its bank details. “In February, the government department changed its International Bank Account … Continue reading EUROCRATS