http://www.myylt.com/2010/06/07/what-are-the-effects-of-devaluation-of-currency-on-trade/ Discussion of Forex Trading and Currency Trading Thu, 24 May 2012 02:57:44 +0000 http://wordpress.org/?v=2.3.3 http://www.myylt.com/2010/06/07/what-are-the-effects-of-devaluation-of-currency-on-trade/#comment-26431 Lessaware Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2010/06/07/what-are-the-effects-of-devaluation-of-currency-on-trade/#comment-26431 Devaluation means your money is worth less compared to the other currency. Suppose you used to have to pay $1.00 for a hamburger from Canada or from the U.S. We devalue by 50%, now you have to pay 1.50 for a hamburger from Canada. At the same time, the price of American hamburgers are the same, so you can still buy a hamburger for $1.00. So you can buy more goods in at home for your dollar than from other countries. Devaluation means your money is worth less compared to the other currency. Suppose you used to have to pay $1.00 for a hamburger from Canada or from the U.S. We devalue by 50%, now you have to pay 1.50 for a hamburger from Canada. At the same time, the price of American hamburgers are the same, so you can still buy a hamburger for $1.00. So you can buy more goods in at home for your dollar than from other countries.

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