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Strategies & Market Trends : Currencies and the Global Capital Markets
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To: Henry Volquardsen who wrote (469)8/24/1998 9:26:00 PM
From: Jags  Read Replies (3) of 3536
 
Yes, devaluing slashes purchasing power, dashes confidence in the
local economy, leads to higher interest rates to check the outflow
which in turn causes recession fears.

But my question is with so many negatives, what forces a country to
devalue? How can the IMF *force* them to devalue?

Jags
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