Devaluation now. (devaluation of the Israeli shekel)

From: Israel Business Today | Date: November 25, 1994| Author: Propper, Dan | Copyright information

A devaluation of the Israeli shekel will help the country reduce its large surplus of imports in the balance of payments. A devaluation will make imports more expensive and increase the profitability of exports. Most other countries have solved their balance of payment problems by devaluing their currency. Without a devaluation, a recession will likely occur. Then there will be increased unemployment, which will decrease demand for domestic products. Less domestic demand means exports will be...

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