Competitive devaluation

Competitive Devaluation
Definition Competitive Devaluation
Competitive devaluation occurs when a country tries to devalue its currency to increase its international competitiveness.

Dictionary Term
competitive devaluation
Dictionary Term
panic dumping ...

Beggar-thy-neighbor An international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners.

An international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners. Beggar-thy-neighbor devaluation ...

A macroeconomic strategy focusing on expansion of the export sector --such as through export subsidies or competitive devaluation --as a way of boosting economic growth while avoiding the inflationary consequences of higher domestic spending.

A course of action through which a country tries to reduce unemployment and increase domestic output by raising tariffs and instituting non-tariff barriers that impede imports, or by accomplishing the same objective through competitive devaluation.

An international trade policy by a country aimed at seeking domestic gains at the expense of its trading parties (for instance through competitive devaluations). Such a policy may lead to trade wars.

Sufficient devaluation is presumed to make a country so much more competitive than other countries that competitive devaluation can in effect be considered the export of unemployment.

A country could simultaneously lower the international prices of its exports and increase the local currency price of its imports by devaluing its currency against the currencies of its trading partners. This 'competitive devaluation' was practiced ...

4This solution resembled that of the Bretton Woods system, in which the dollar acted as the hub.
5 In practice this principle implies to avoid competitive devaluations, harmful for the overall EMU stability.

See also: Expense, Barriers, Balance of payments, Banks, Current account