When a country is facing increasingly difficult economic times, it sometimes makes sense for the central bank to devalue its currency, in order to make its exports more competitive in the global market. However, by extension, this would also make any imports more expensive for consumers. What might be some other unintended consequences of devaluation for consumers in a country?

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Devaluing a currency can be a doubleedged sword for consumersoffering potential benefits in competitiveness but also carrying unintended consequencesH... View the full answer