DOES DEVALUATION REALLY HELP THE ECONOMY

QUESTION AND ANSWER
✓ Firstly, what is currency devaluation?
Currency devaluation involves taking measures to strategically lower purchasing power of a nation's own currency or we can say Devaluation is the decision to reduce the value of a currency in a fixed exchange rate thereby making domestic resident find imports and foreign travel more expensive while domestic export more cheaper.

✓ From the question asked "does devaluation really help the economy"
We can say that it has its own advantage and disadvantage
Countries pursue this strategy "currency devaluation" to gain competitive edge in global trade and reduce sovereign debt burdens. However, it doesn't happen without some negative consequence which will be treated below shortly.
Note that the government issuing the currency decides to devalue the currency unlike depreciation, it is not the result of non-governmental activities.

A country may choose to devalue it's currency in other to combat trade imbalance. As we know, devaluation reduces the cost of a country's export, rendering them more competitive in the global market, which in turn increases the cost of import, so domestic consumer are less likely to purchase them, further strengthening domestic business. Because export increase and import decrease, it also favors a better balance of payment by shrinking trade deficit. That means a country that devalues it's currency can reduce it's deficit because of the strong demand for cheaper exports.
This indeed can lead to currency war among nations 

Some of the advantage of devaluing a currency include 
1.  It boost export 
2. It shrink trade deficit
3. It reduces sovereign dept burdens

However some of the disadvantage in devaluing a currency include
1. Currency devaluation may lower productivity since import of capital goods and machinery may become too expensive.
2. It leads to currency war 
3. Aggregate  demand increases causing demand pull inflation
4. It reduces the purchasing power of citizens abroad i.e more expensive to go on holiday e.t.c 
In conclusion not all country should adopt this strategy if they know that the disadvantage weigh more than the advantage 


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