Advantages and Drawbacks of Undervalued Versus Overvalued Currencies

© 2019 Prof. Farok J. Contractor, Rutgers University Also See the Companion Post:  Is the Indian Rupee Undervalued or Overvalued? What Purchasing Power Parity Theory Tells Us Currencies can be undervalued (very devalued) for natural reasons, such as political crises causing the rest of the world to become wary of holding that country’s assets or currency … Continue reading Advantages and Drawbacks of Undervalued Versus Overvalued Currencies