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An undervalued currency raises the cost of imports into the country whose currency is undervalued. For other countries, it subsidizes imports from the country
by mediaman 7y ago
An undervalued currency raises the cost of imports into the country whose currency is undervalued.
For other countries, it subsidizes imports from the country with the undervalued currency.
He's not claiming that an undervalued currency helps that country purchase additional imports.
- mrb 7y agoAh I see, this makes sense. Thanks. I misunderstood the second paragraph.