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[+]Guerilla0 points1 point1 point
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(edited ago)
[–]Guerilla0 points
1 point
1 point
(+1|-0)
ago
(edited ago)
Devaluation being done all the time would lead to hyperinflation. It's only reserved for times of crisis when deflation also occurs (not always) to to fix the problem. It's a tool to fix a crumbling economy, not to grow it. Not to mention that devaluation also means, well, less value practically resulting in lower wages (in no way though a 20% devaluation means 20% less real wages, it's much much lower because of a number of reasons)
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[–] Guerilla 0 points 1 point 1 point (+1|-0) ago (edited ago)
Devaluation being done all the time would lead to hyperinflation. It's only reserved for times of crisis when deflation also occurs (not always) to to fix the problem. It's a tool to fix a crumbling economy, not to grow it. Not to mention that devaluation also means, well, less value practically resulting in lower wages (in no way though a 20% devaluation means 20% less real wages, it's much much lower because of a number of reasons)