Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Monetary Devaluation - Paper

Monetary Devaluation

Like every other product the coin of a country has a price, which is the exchange type; this represents the quantity of Mexican pesos that are needed to buy an American dollar, and like every other price this one is determined because:
a) Because of the offer and demand of dollars, or
b) Because of the monetary authorities of the country.
The origin of the exchange types comes from the necessity that residents of one country have to buy another country's money in order to cover their international debts. In Mexico's case, residents demand dollars to buy goods and services from the exterior (imports); the offer of dollars comes from the selling of goods and services to the exterior ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

Mexico the exchange type maintains fixed and the tendency of high prices is bigger than that one of the countries with whom we handle business normally, we will have a relative expensiveness of our goods and services with respect to the foreign ones. At the same time, foreign products will be cheaper to us. This situation provokes an increment in imports, carrying the demand of dollars, while the offer reduces as exports weaken. To stop this unbalance between offer and demand and not devaluating the coin, the government goes to external credit, establishes control over imports, subsides exports, etc… A situation of this type cannot maintain undefined. A way to correct this unbalance is to devaluate the coin (modification of the exchange type in the one the price of dollars in terms of our coin is increased).

MONETARY DEVALUATION

EXPERIENCE IN DEVALUATIONS:
While the devaluation in 1938 was associated with the petroleum expropriation, the one in 1948 was considered as ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login

CITE THIS PAGE:

APA
MLA
Chicago
Turabian

Monetary Devaluation. (2007, June 5). Retrieved January 30, 2026, from http://www.essayworld.com/essays/Monetary-Devaluation/65958

"Monetary Devaluation." Essayworld.com. Essayworld.com, 5 Jun. 2007. Web. 30 Jan. 2026. <http://www.essayworld.com/essays/Monetary-Devaluation/65958>

"Monetary Devaluation." Essayworld.com. June 5, 2007. Accessed January 30, 2026. http://www.essayworld.com/essays/Monetary-Devaluation/65958.

JOIN NOW

Join today and get instant access to this and 50,000+ other essays

PAPER DETAILS

Added: 6/5/2007 08:34:02 AM
Category: Miscellaneous
Type: Premium Paper
Words: 715
Pages: 3

Save |

Report

SHARE THIS PAPER

SAVED ESSAYS

Save and find your favorite essays easier