Home > Terms > English, UK (UE) > J-curve

J-curve

The shape of the trend of a country's trade balance following a devaluation. A lower exchange rate initially means cheaper exports and more expensive imports, making the current account worse (a bigger deficit or smaller surplus). After a while, though, the volume of exports will start to rise because of their lower price to foreign buyers, and domestic consumers will buy fewer of the costlier imports. Eventually, the trade balance will improve on what it was before the devaluation. If there is a currency appreciation there may be an inverted J-curve.

This is auto-generated content. You can help to improve it.
0
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Featured Terms

  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Sports Category: Basketball

dead ball

(basketball term) any ball that is not live; occurs after each successful field goal or free-throw attempt, after any official's whistle or if the ...

Contributor

Featured blossaries

Top food in the world

Category: Food   2 9 Terms

The world of travel

Category: Other   1 6 Terms