File:J curve.svg
[edit] Summary
| Description |
The J curve shows the effect of a devaluation of a currency on the net export (exports minus imports). When the devaluation takes place at t the net export falls from A to B, since the level of import is unchanged, but the currency is worth less. As time goes on the net export will gradually change since consumers buy less imported goods, and other countries buy more goods from the country due to the lower real price. At C the net export break even. With time the net export will find equilibrium. |
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| Source |
I created this image entirely by myself. |
| Date |
2008-06-06 |
| Author | |
| Permission (Reusing this file) |
See below. |
| Other versions | The image is made with PGF. The original Tikz code can be found here: [1] |
[edit] Licensing:
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File history
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| Date/Time | Thumbnail | Dimensions | User | Comment | |
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| current | 09:58, 6 June 2008 | | 316 × 200 (9 KB) | Rasmus.p (talk | contribs) | {{Information |Description=The J curve shows the effect of a devaluation of a currency on the net export (exports minus imports). When the devaluation takes place at ''t'' the net export falls from ''A'' to be, since the level of import is unchanged, but |
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