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 Glossary   >   J   >   "J-curve" Definition   

        J-curve

Theory that says a countrys trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.

J-curve


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J-curve - Theory that says a countrys trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.


J-curve : theory that says a countrys trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run.