Since most bank loans and public debt are in dollars, the devaluation of the currency has only made things worse.
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In many countries, a conventional response to all this might include a tough fiscal policy and a devaluation of the currency to improve competitiveness.
Predicted price rises for fuel will coincide with strong pressure for a devaluation of the currency, a toxic mix that has frightened off previous governments.
Blame that partly on the emerging-market flu which last year hit Brazil, culminating in the January devaluation of its currency, the real, and which this year has affected Argentina.
It marked a cumulative loss of nearly 4 percent this week, after Egypt's central bank took steps in what bankers believe is an attempt to control the devaluation of the currency.
His hasty mass-privatisation programme, which made ordinary Czechs the formal owners of most enterprises but gave control to state-owned banks with no interest in improving them, created a crisis that culminated in a humiliating devaluation of the currency in May last year.
Although devaluation of the currency and inflation would generate losses for creditors, those losses are typically a fraction of losses that would arise from a default by government or - as Greece is trying to do - from a request to creditors to voluntarily forgo an element of what they're owed.
This serves as a proxy for all of our commodity-related expenses such as food and fuel, and, as the effects of currency devaluation spread, rising prices for all sorts of goods and services.
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There was also protesting in Iran this week due to the severe devaluation of the Iranian currency recently.
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The devaluation of the Thai currency, the baht, in July, started a regional wave that has engulfed the Philippines, Indonesia, Malaysia and now Hong Kong.
Oriental Weavers, another Egyptian firm, this week reported a 19% rise in annual profits, its carpet exports boosted by last year's devaluation of the Egyptian currency.
It will be used to bolster foreign-exchange reserves depleted by a failed attempt to prevent devaluation of the Thai currency, the baht, and further threatened by the flight of short-term foreign money.
Of course, the British government is not the only one pursuing a combined policy of QE, unstated currency devaluation, the suppression of market forces in the bond market and tacit toleration of high inflation.
's exporters from automobiles to tech and optics -- has arrived in the form of currency devaluation.
Though the devaluation of Brazil's currency, the real, was widely anticipated, it nonetheless jolted the global financial system.
Often, the negative aspects of currency devaluation are not felt directly at first.
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Failure would mean not just a forced devaluation of Brazil's currency, but would also damage Mr Cardoso's credibility, perhaps irreparably.
Most of these nations have had a long-standing habit of putting off real reform by taking the drug of currency devaluation.
Local currency debt come with higher coupons (yield at offer, and par), but come with the added risk of currency devaluation.
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All of these money manipulation techniques basically amount to forms of currency devaluation, even if that is not their overt goal.
As countries pursue policies of currency devaluation, country choice grows in importance.
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Since a devaluation of Thailand's currency, the baht, in July, undermined confidence in the region as a whole, Indonesia's rupiah has lost a third of its value.
In the euro's first decade, southern Mediterranean countries enjoyed the benefit of lower interest rates, but they failed to reform their labour and product markets to make their economies more competitive for a world in which they had lost the safety-valve of currency devaluation.
Without the option of a currency devaluation, countries such as Spain, Portugal and Italy have no alternative but to restrain labour costs and bring in supply-side reforms that raise productivity, especially through the freeing of labour markets.
So why not then break free of the euro and have that deflation as a currency devaluation rather than an internal devaluation of wages?
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Through the summer, the plight of Greece and then Spain had all the hallmarks of a catastrophe, ending in a Euro-exit and massive currency devaluation, but after that the hope of redemption.
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According to those very same pundits, Bernanke and company are leading us down the path of runaway price increases and a devaluation of the dollar that will eventually lead us to the mother of all currency crises.
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Excluding the impact of Venezuela's currency devaluation and other items, it earned 77 cents per share.
This continues until there is a reflation, a currency devaluation and government guarantees of the efficacy of key financial intermediaries.
That currency devaluation means the value of the government debts increases, causing it to eat more into its remaining reserves to pay them off.
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