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When is it better ( recession or full employment) to have a weaker currency? why?

When is it better ( recession or full employment) to have a weaker currency? why?
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Answer #1

It is better to have weaker currency during recession.

During recession, output is below full employment. When currency depreciates, it becomes costly for domestic residents to buy foreign goods which decreases imports. At the same time it becomes cheaper for foreign to buy domestic goods that leads to increase exports. This results in increase in net exports and thus aggregate demand that moves the economy towards full employment.

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