Devaluation
Devaluation is the lowering, by governmental action, of the price of its currency relative to another currency. For example, in 1967 the British pound was devalued from $2.80 per pound to $2.50 per pound. development bond A tax-exempt bond sold by state and local governments whose proceeds are made available to corporations for specific uses deemed (by Congress) to be in the public interest. direct quotation When discussing exchange rates, the number of U.S. dollars required to purchase one unit of a foreign currency. disbursement float Float created before checks written by a firm have cleared and been deducted from the firm's account; disbursement float causes the firm's own checkbook balance to be smaller than the balance on the bank's records.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Devaluation. The lowering, by governmental action, of the price of its currency relative to another currency. For example, in 1967 the British pound was devalued from $2.80 per pound to $2.50 per pound. development bond A tax-exempt bond sold by state and local governments whose proceeds are made available to corporations for specific uses deemed (by Congress) to be in the public interest. direct quotation When discussing exchange rates, the number of U.S. dollars required to purchase one unit of a foreign currency. disbursement float Float created before checks written by a firm have cleared and been deducted from the firm's account; disbursement float causes the firm's own checkbook balance to be smaller than the balance on the bank's records.
According to Macroeconomics by Mankiw (7th edition),
- Devaluation. An action by the central bank to decrease the value of a currency under a system of fixed exchange rates. (Cf. revaluation.)
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
