Currency Devaluation: A review

Abstract

Currency devaluation is an essential topic in the history of international economics and finance. It has proven to have a diverse impact on individual economies, while it is positive on some economies’ Trade, growth, and Development, it is harmful to others. This is a review of several research works in which the ways through which currency devaluation affects trade and growth were surveyed, and the study found that the effects of Currency devaluation is inconclusive and hanging starting from earlier studies as far back as 1940’s up to recent studies. After reflecting on the conflicting results, this study argued that the studies on currency devaluation are still hanging. Recent studies reveals that there is need for further research to better address the issue of recurring currency crises after devaluation, emphasizing the need for continued research on the subject and the need to have several reviews to provide ready summarized research for public policymakers that may still be in doubt as what the effect of devaluation might be to their economy.