How does the j-curve effect relate to the time path

Reference no: EM132172640

Question: 1. How does the J-curve effect relate to the time path of currency depreciation?

2. What implications does currency passthrough have for a nation whose currency depreciates?

3. According to the absorption approach, does it make any difference whether a nation's currency depreciates when the economy is operating at less than full capacity versus at full capacity?

4. How can currency depreciation-induced changes in household money balances promote payments equilibrium?

Reference no: EM132172640

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