Alternatives of Devaluation

Devaluation is not the only means to attain the objectives like increasing the volume of experts, correcting deficit balance of payment position or increasing the competitive edge. There are a good number of alternatives to devaluation.

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Negative Impacts of Devaluation

The negative impact of devaluation on economy are very adverse which require critical evaluation of such a vital macro economic policy. The possible negative impacts of devaluation of economy may be mentioned as under:

• Effects on production, investment and employment.
• Effects on inflation and real income.
• Effects on future competition.
• Effects on output.

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