Impeach George W. Bush Message Board

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Politics : Impeach George W. Bush

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To: HPilot who wrote (86747)	11/8/2007 1:38:51 PM
From: tonto	Read Replies (1) of 93284

I thought you made a mistake or typo. Currency devaluation decreases imports and increases exports. Because they will require the same payment in their currency, ours is worth less so we have to pay more for the import. The reverse is true for our exports so they will be cheaper over there. Thus we buy less imports and sell more exports, thus helping the trade deficit. Why will imports increase?

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