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Topical Terminology > J-curve



2 Definitions

J-curve

For J-curve we have terms and definitions in 2 topics. The topics are Finance and International Economics.



J-curve (Finance)

Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short run.


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J-curve (International Economics)

The dynamic path followed by the balance of trade in response to a devaluation, which typically causes the trade balance to worsen before it improves, tracing a path that looks like a letter "J".




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