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Monetary Devaluation
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Like every other product the coin of a country has a price, which is the exchange type; this represents the quantity of Mexican pesos that are needed to buy an American dollar, and like every other price this one is determined because:
a) Because of the offer and demand of dollars, or
b) Because of the monetary authorities of the country.
The ori ....
Middle of paper ....aper to us. This situation provokes an increment in imports, carrying the demand of dollars, while the offer reduces as exports weaken. To stop this unbalance between offer and demand and not devaluating the coin, the government goes to external credit, establishes control over imports, subsides exports, etc… A situation of this type cannot maint.... |
Word count: 715 |
Page count: 3 |
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