The Cause and Impact of Currency Devaluation

The official reduction in the value of a country’s currency within the system of fixed exchange rate is termed as devaluation. Following the devaluation a new fixed rate is established for the country taking a foreign currency as reference.

Here are the impacts that result from devaluation.

  1. Cheap exports
  • A decline in the currency value implies that the foreigners who import items from your country will be able to buy it at cheaper and more competitive rates.
  • The increase in affordability can also result in an increase in the demand of exports.
  1. Expensive imports

With depreciation in the currency of your country, imports will become more expensive and will probably suffer a setback in terms of demand.

  1. Increased AD (Assuming Demand)
  • With devaluation, there is an increase in the demand for exports and decrease in the demand for imports.
  • This leads to higher economic growth causing an increase in AD.
  • An increase in AD might result in higher Real GDP and inflation.
  1. Inflation

The factors that lead to inflation include

  • Expensive imports
  • Rise in AD
  • Cheaper exports that lead to reduced incentives for manufacturers leading to cut in costs for more efficiency. Over time this may cause an increase.
  1. Current Account Improvement

The deficit in the current account is compensated by the increase in exports and decrease in imports.

The factors on which the devaluation depends on include:

  1. Elasticity of demand for imports and exports
  • If demand is price inelastic, then there is only a small rise in quantity with a decrease in price of exports. This leads to a decline in the value of exports.
  • Devaluation may take some time to have an impact. However, in the short run, demand may become price elastic over time even if its price inelastic initially.
  1. Global Economy

Demand of export may not increase as expected if the global economy is going through recession.

  1. Inflation

The relation between inflation and devaluation is subject to many factors.

  • If there is an economic recession then devaluation will not lead to inflation.
  • In the short run, the firms may reduce their profit margins preventing inflation.


Top 10 Countries with Most Number of Millionaires

A recent study by Credit Suisse showed that the United States and United Kingdom lead the world with the most number of millionaires worldwide.

With 15.65 million people with net worth of a million dollars or more, the United States is the runaway leader in this department. By 2020, this is projected to rise by 32% to 20.61 million millionaires.

China, though, is expected to lead the percentage increase in the number of millionaires by 2020 with 74 per cent, closely followed by Africa with 73 per cent over the same period.

Owing to more opportunities in the emerging markets, composed of low to middle income economies, share of percentage in number of millionaires will rise from 6.5 to 7.4 per cent by end of the decade.



Number of millionaires (2015): 15.65 million
Number of millionaires (2020): 20.61 million

Change: 32%


Number of millionaires (2015): 2.36 million
Number of millionaires (2020): 3.82 million

Change: 62%


Number of millionaires (2015): 2.12 million
Number of millionaires (2020): 3.59 million

Change: 69%


Number of millionaires (2015): 1.79 million
Number of millionaires (2020): 2.86 million

Change: 60%


Number of millionaires (2015): 1.52 million
Number of millionaires (2020): 2.36 million

Change: 55%


Number of millionaires (2015): 414,000
Number of millionaires (2020): 744,000

Change: 80%


Number of millionaires (2015): 168,000
Number of millionaires (2020): 229,000

Change: 37%


Number of millionaires (2015): 142,000
Number of millionaires (2020): 212,000

Change: 50%


Number of millionaires (2015): 122,000
Number of millionaires (2020): 206,000

Change: 68%


Number of millionaires (2015): 107,000
Number of millionaires (2020): 165,000

Change: 54%


How an iPad Pro Makes Job Easier for Architects

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5 Biggest Résumé Mistakes According to Google’s HR Man

Résumé plays an extremely important role in your hiring process. It speaks for what you are as an individual, as a professional and how hiring you would benefit the organization. It has to be good enough to be able to convince the person on the other end of the line that you’re worth giving a chance.


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Didn’t get a call back after the interview?  Maybe you knew everything you were asked but the way you answered wasn’t convincing enough or maybe you just didn’t dress up for it. There are numerous reasons that on the basis or your interview determine whether you bagged that job or not. We are enlisting five common issues that prompt hiring managers to take you out of the race.


Digital Advertising Expected to Reach 50% of UK Advertising Market This Year

For the first time in history, digital advertising will account for half of all advertising budget in the UK as money dedicated to marketing content intended for the Internet and smartphones hits all-time high.

According to Strategy Analytics, it is expected that nearly £8 billion will be spent on digital advertising in the UK this year, an increase of 9.5%, which dwarfs the 1.6% growth for traditional advertising.


10 Cover Letter Clichés to Avoid

When an employer requests a cover letter from an applicant, he or she is giving him the chance to brag about his or her achievements. However, a lot of job seekers blow it off. Instead of taking time to write a unique and authentic cover letter, convincing the employer why they should be hired, applicants can easily go lazy, and use Google search cover letter samples to use as models.

Applicants can do better than a copy-pasted cover letter. It is important for job seekers to make sure that they do not include one of these cover letter clichés in their cover letters to prevent employers from throwing their letters into the trash bin or the shredder. The 10 most common clichés include the following: