Investment Term for the Day - J Curve Podcast Por arte de portada

Investment Term for the Day - J Curve

Investment Term for the Day - J Curve

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 A J Curve is an economic theory which states that, under certain assumptions, a country's trade deficit will initially worsen after the depreciation of its currency—mainly because in the near term higher prices on imports will have a greater impact on total nominal imports than the reduced volume of imports.
This results in a characteristic letter J shape when the nominal trade balance is charted as a line graph.

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