In addition to that instance of this action, the UK performed this action in 1967 and 1992, each time in the face of high unemployment and a worsening current account.
One instance of this action triggered a worldwide cascade of protectionism after 1931 according to a paper by Eichengreen and Irwin, as well as a counterproductive increase in the discount rate according to Friedman and Schwartz. In addition to that instance of this action, the UK performed this action in 1967 and 1992, each time in the face of high unemployment and a worsening current account. The J-Curve is an empirical regularity that pertains to the dynamic effect of this action. If price elasticity is low in the short run, this action causes expenditure on imports to increase. Thus, the (*) Marshall-Lerner condition fails initially, but in the medium run domestic consumers substitute away from imports and exports become cheaper, thus improving the Balance of Payments without deflation. For 10 points, what is this economic policy for a fixed-exchange regime, aimed at improving an economy's net exports, in which the value of a domestic currency is reduced relative to foreign currencies?
One instance of this action triggered a worldwide cascade of protectionism after 1931 according to a paper by Eichengreen and Irwin, as well as a counterproductive increase in the discount rate according to Friedman and Schwartz.
currency devaluation (accept "abandoning the gold standard" or equivalents, but do NOT accept "depreciation")