Apr 21 2012

J-Curve

Published by at 7:30 pm under

A graph showing the likely change in a nation’s current account balance over time following a depreciation of the nation’s currency. Called “J-curve” because in the short-run, the current account is likely to move down, into deficit, but in the long-run (once consumers at home and abroad become more responsive to the weaker currency), net exports will increase and the current account will move towards surplus.


About the author:  Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author

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