What other economic indicators would you check

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Question: After years of smoldering unrest in southern Mexico, the rebels finally mount a full-scale attack on urban areas. Order is eventually restored, but in the meantime capital has fled the country, resulting in a 50% devaluation of the peso. You recall that there were similar devaluations in 1982, when the US economy was in a lengthy recession, and in 1995, when real growth in the US economy slowed down to 1% before rebounding. Based on this previous information, would you expect this devaluation to reduce real growth in the US? What other economic indicators would you check before making this determination?

Reference no: EM132127709

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