Discuss the properties of the static model

Reference no: EM132127628

Question: In 1999 Brazil was forced to devalue the real by almost 50%, and in 2002 Argentina was forced to devalue the peso by almost 50%. According to the static model, that would boost net exports and raise GDP. However, both countries plunged into a deep recession. Explain why that happened.

Reference no: EM132127628

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