The Devaluation Delusion Revisited

The only foreseeable benefit to be gained through a devaluation is a reduction in uncertainty as an end will be put to the rampant speculation on when the RMB will be devalued.

Having promptly achieved depreciation, it may have succeeded.

Financial markets understood the impact of this and expected a devaluation.

Why are China's leaders so adamant against devaluing the RMB? First, Prime Minister Zhu Rongi and his advisors are very uncertain about the short run benefits to be gained from any devaluation.

Now, however, the specter of devaluation has disappeared from northern European countries.

One way is as part of America s strategy of competitive devaluation.

Why are China's leaders so adamant against devaluing the RMB?

This meant that as the ruble depreciated, Russia s debts rose.

If we had restructured Russia's debt, there would have been a risk of devaluation.

Indeed, avoiding continuous competitive devaluations is more a blessing than a curse.

So cultural openness poses the risk that we debase the currency of our values.

Eurozone membership precludes inflation and devaluation as adjustment mechanisms.

In the budget this is paid for by the favorable effect of devaluation on government oil revenues.

Indeed, even with the turmoil of default and devaluation, and despite the usual 12 18 month lag in the impact of devaluation, Russia was growing at 5.4 annually by the end of 1999.

Much of the trouble is not the loss in competitiveness from the recent devaluation of other Asian economies.

Greece is heading towards disorderly default and or devaluation with incalculable consequences.

As a result of the devaluation, clients began to gather at banks to withdraw their money.

Our current situation does not permit us to benefit from devaluation and increase production.

Soon after the devaluation, bank leaders, deputies, and officials held several emergency meetings.

Soon, devaluation in a nearby country reveals how vulnerable the economy is to the loss of international confidence.

One proposed solution is for these countries to engineer the equivalent of a devaluation a uniform decrease in wages.

China's problems won't be resolved by a devaluation of 20 or even 40 .

Often those who purchase dollars do so out of concern of local currency devaluation.

None of these countries central banks has indicated that it was involved in depreciating its currency.

This policy eventually became unsustainable, leading to a catastrophic sudden devaluation in September 1980.

High interest rate compensate for the risk that Argentina might stop paying the debts or devalue the currency or both.

Europe s leaders were also paralyzed ruling out defaults and devaluations, as well as deficits and stimulus.

After the start of the Asian crisis, and with the fall in commodities prices, markets began to anticipate currency devaluations in the region.

In the 1980 s, Scandinavian countries stood for chronic budget deficits, high inflation, and repeated devaluations.

On Saturday, February 15th, Almaty was the site of the largest anti devaluation protest to date.

Any boost to competitiveness, for example, is likely to be small and brief, as over 50 of China's exports are part of re export industries using a great deal of imported materials or semi finished goods.

The IMF did not want Russia to devalue, and it provided billions of dollars to prop up the exchange rate.

Sadly, America is not alone in viewing devaluation as a panacea for domestic problems.

First, Prime Minister Zhu Rongi and his advisors are very uncertain about the short run benefits to be gained from any devaluation.

6. The Government has adopted measures leading to structural changes in economic activity, including the devaluation of the national currency.

My country regrets the fact that the steps to accompany the devaluation have not been entirely honoured.

Thus, since the devaluation of the CFA franc, my Government has been continuing negotiations with the World Bank and the International Monetary Fund.

A simple, effective way to buy time would be to abandon the euro and restore competitiveness through a devalued national currency.

Chinese devaluation rumors abound and the most common view is that sometime next year one is inevitable. Of course, this won't take place before the 50th anniversary of Mao's revolution this October, but expect it soon afterwards.

In August of that year, then President Boris Yeltsin declared, There will be no devaluation that is firm and definite.

Chinese devaluation rumors abound and the most common view is that sometime next year one is inevitable.

Protests are rare in the authoritarian country, so the modest anti devaluation demonstrations on February 15 and 16 were a big deal.

As the currency appreciates in real terms, exports falter and the current account deficit widens, and the government balks at devaluation.

If China's leaders look to devaluation, they will add to their headaches and put Asia at risk.