Are Devaluations Contractionary?
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There seems to be some issue with the editing of this video -- some unintended repetition and some narration is cut-off mid-sentence. This starts with the J-curve (3:08) and goes on on until the end of the video. Video seems to be missing (white screen) at times, too.
Am I the only one seeing this?
Maybe this will be answered later but what about the impact of the policy tool for bringing about depreciation? That is, to depreciate its currency, doesn't a country need to buy the foreign currency? And won't that typically be via newly created money, and an expansion in the money supply? And won't that lead to inflation, negating some or all of the effect of the depreciation? Is it possible in theory and practice to keep a currency below its "natural" rate fro prolonged periods, given the offsetting impact of money supply growth and inflation?