Investment Term for the Day - J Curve
Mar 11, 2024 ·
1m 17s
![Investment Term for the Day - J Curve](https://d3wo5wojvuv7l.cloudfront.net/t_square_limited_480/images.spreaker.com/original/4455cb9e4bce4fe84430657dd840aab7.jpg)
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Description
A J Curve is an economic theory which states that, under certain assumptions, a country's trade deficit will initially worsen after the depreciation of its currency—mainly because in the near...
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A J Curve is an economic theory which states that, under certain assumptions, a country's trade deficit will initially worsen after the depreciation of its currency—mainly because in the near term higher prices on imports will have a greater impact on total nominal imports than the reduced volume of imports.
This results in a characteristic letter J shape when the nominal trade balance is charted as a line graph.
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This results in a characteristic letter J shape when the nominal trade balance is charted as a line graph.
Information
Author | Africa Business Radio |
Organization | Africa Business Radio |
Website | - |
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