Topic: Is the only aim of devaluation, to help stimulate a countries economy? (Read 183 times)

No government indeed wants its country's currency to fall or the country's economy to suffer, but it is also a very big fact that when incompetent rulers are in government, they cannot manage the government because of their wrong decisions. Due to this, the country's currency and the country's economy are severely damaged. I am saying this because the situation of our country is not different from it, either because of the competent rulers or because of the wrong decisions made, the currency is going down day by day and the country is suffering from a crisis.

While Bitcoin is developing day by day and its fame has reached all countries, it has also become legal in many countries. In our country, cryptocurrency is also banned and trading is illegal. A country that cannot change itself or bring development following the needs of time and circumstances is a victim of a crisis where everyone is earning money from cryptocurrencies, the problem of unemployment seems to be more than in other countries.

To improve the country's economy, the government should promote online jobs and create opportunities so that people can earn more from online jobs and remove taxes and restrictions on online earnings so that unemployment in the country is reduced. This can end and the country can develop because if the people of a country will develop then obviously that country will develop and if the people of a country will be bound to benefit from all kinds of new inventions then that country can never progress.

Yes there are many ways for a country to recover their economy through cryptocurrencies without devaluation. An example is a country’s citizens being financially stable through the help of cryptocurrencies could potentially increase economic activity.
A country could focus on exporting more of their goods outside the country

If there’s more exports than imports then we could say that an economy is being stimulated and we could expect more growth as time progresses.

Crypto is reserved from the outside market, there is no way it can "save" a dying economy or a dead economy for that matter. Using cryptocurrency as a means to "revive" a dead export commerce is the same as using a different currency cause your current one's jackshit, and we all know how that worked for the Venezuelan and the Zimbabwean National Currencies, soon as they started to really adopt the Dollar and other currencies for that matter.

Only thing that I can see that could really bring back a dead economy from recession is initiative from playmakers to invest in the country despite the high risk involved. Japan did it and for a while they became one of the richest countries on the planet. The US did it after 9/11 and while it is in shambles it has certainly cemented some form of power play for said country. Other than these playmakers I don't see any other way a country could ever recover from recession, cause one thing about it is that it drops the value of consumables and assets, but it also drops the value of your money so you can't buy shit, and without investors banking on your money to come back from the dead, recovery is impossible.

No government wants their country's currency to devalue but when they have nothing else to do they force it to devalue. In recent times, the governments of some countries have become so enmeshed with corruption that they do not care about the state of the country's economy. However, the thinking of the governments of developed countries is completely different. Almost everyone knows the situation in Nigeria today where the country's economy has reached an alarmingly bad level due to corruption and other reasons. The government must play a role in the development of the economy of a country. The people of that country must have a positive outlook otherwise it is not possible to expect economic prosperity of that country. Considering cryptocurrency as a medium of exchange, it cannot play a role unless governments take action.

1.No. Cryptocurrencies are legal(which means that they are accepted) in most countries around the world. Does this stimulate their economies? There was no result whatsoever. I don't think that this had any impact over their economies.

2.Lowering taxes, removing dumb regulations and bureaucracy. Creating a better business environment. Those are the right wing policies.
The left wing policies are mostly about the government investing heavily in infrastructure, education and healthcare.

Devaluing the local currency is "the last resort" of any country's monetary policy(when all the other measures to stimulate the economy don't work).

By the right with good government or president that has sense will not devalue his country currency to develop his country by the world Bank or IMF. If a country devalue his country currency then another country currency will have value in your country and your country currency can't buy anything and instead the dollar will be dominating and importation goods will be high for the citizens to buy.

Devaluation have not helped any country in the world but Africans countries are still very foolish to this believe that if they devalued their currency then there will be development because the advance countries will support them but that is a very big lie. America or British would never use their resources to come develop another country but your resources and once you devalue tour currency then you can't develop your country again because things would be more expensive to buy.  So adopting bitcoin will be a solution to this problem facing the third world countries.  Because bitcoin is equal in all the countries.

Countries resort to the decision to devalue their national currencies mainly in order to restore balance to their trade balances or at least to reduce the size of this deficit. Because devaluing the national currency leads to making the prices of imported goods more expensive for residents, which is assumed to limit the purchase of goods coming from abroad and encourages demand for national products.

But this does not always succeed because this depends on the extent of the ability of the national production machine to manufacture goods imported from abroad with similar quality and competitive prices, and replace them with national products. This requires resources and the national industry to be active.

As for your question about accepting the cryptocurrency helping to stimulate countries’ economies in addition to reducing the value of the currency, I do not think so because the cryptocurrency is merely an alternative to the national currency, and if the economy is suffering in the first place, switching the currency will not be helpful.

Cryptocurrency doesn't have much or anything to do with the economy especially if you are talking of government. Government see cryptocurrency as a threat to fiat where they can control it and manipulate you and everyone including manipulating the economy. Moreover, cryptocurrency wasn't build for the use of government or benefit to the government rather it purpose is for freedom for the people. It benefit will rather go for the people if you believe in it, accumulate, hodl and cash out for profit. So I don't think it relates to devaluation and moreover government don't estimate the economy using crypto, they either peg their economy with their local currency or US dollar.


By proper and genuine planning, no corruption, use the money allocated for the particular project and not to embezzle it for private pocket, follow the budget allocation for all project and use money allocated to implement them, don't pad the budget, people in government need to be sincere with public funds. Sincerely embark on capital project and employment will go across the economy then their must be manufacturing and exportation will increase reserve after GDP growth from IGR.

A small scheduled annual devaluation is supposed to stimulate spending. When people know that the money they currently have will have less purchasing power in the future, they should make big purchases because it's better to make them now then in the future.
But there are other ways of stimulating economy, such as boosting manufacturing, issuing support systems for the most disadvantaged, etc.

Because of the many advantages that you can get from cryptocurrency, it doesn’t mean that it has become a safe haven to help develop the economy of a country or save it from devaluing its currency. Cryptocurrency should not be seen beyond what it can offer because it’ll definitely face some backlogs when attempting to do that and that’s where the enemies of it will have an excuse to discard its use more. When applicable to some certain things without causing an effect to it can be apply without further thought, but if its application is not clear enough, it should better not be attempted on in order not to spoil the good name it has all this years.

Is not about the government focusing on locally made products but the question is are they manufacturing them to their best standards? because basically, every average person in the country needs quality so if locally manufactured goods are not to the best standards then a need for imported products may still arise so the government should not only focus on locally made products but they should ensure they are made to the best standards and should make it affordable to consumers.
        High employment rates boost the economy of a country but it depends on the income of the employees because even if a country has high employment rates and the salary is little it won't make any sense because even locally made products are still on the increase now due to inflation so someone that earns little amount of money will still find it difficult to afford local goods.


This is the area I feel the government has a very big work to do because there are individuals in the country that can produce things but since they don't have more resources to propagate the process results to the reason why they are being manufactured to inferior quality but if the government can assist such individuals either buy granting them loan or partnering with them to make sure that they produce those things to the best standards then they can be exported to other countries and it will boost the economy of the country where those products are manufactured.

There are periods in a cycle when a Central Bank needs to deflate the currency. Currently, the U.S. is in a deflationary period. Their money supply has been going down since the increase in interest rates to fight inflation.


That's not actually true. Deflation of a currency doesn't "devalue" it. It actually increases its value, and encourages people to save.

Corruption is indeed an old sickness of the government. However, if the government is sincere to their mission, efficiency and resources are among their top priorities to battle this economic aspect of their jurisdiction. They should also look into tax cuts and tax rebates in order to benefits its consumers. When you increase the productivity, and so is the economy. It will be a domino effect if the government is finding ways how to alleviate the living of its people.

I live in a country where the judiciary that is supposed to be independent of the presidency is in bed with them. They support corrupt politicians. Corrupt politicians use them to oppress the poor, grab lands, win contracts and all. They indirectly destroy the economy. One of the ways to stimulate the economy is to rid the society of corrupt politicians - lock them up for life an let them rot in jail. Their wealth which runs into billions gotten through illegal means should be seized and put into the economy. The judiciary should be independent of the presidency and corrupt judges should face the same fate as corrupt politicians.

That is because they know that it was a bad thing, so why will they do it intentionally? They can only do things (silly or not) which can affect the value of their currency or can make it drop. I still think that devaluation and deflation are too different things, and to me, deflation is not that bad.

Let's face it, it's better to have an affordable price in our goods than compared to higher price and I think it does not always mean that the people behind it are losing. The one that really affects them are the recession and it can happen whenever there is an inflation. Spending money is a good thing because life is only short and we still can spend it in valuable things including investments, that can help us make more money.

The employment rate being boasted is also a good way to reduce poverty in a country, which will also contribute to the economy's growth. But we should also not forget that investing in locally made products will also help. For example, the government should focus on locally made products, which will also help.
 
For example, the government should focus on empowering those who are into the manufacturing of goods that are regularly used in the country to reduce the amount of importation they do in the country. If importation is reduced, there is a high possibility of the economy moving a bit forward, and those locally manufactured products can also be exported to other countries.

I doubt it, while I really think that bitcoin is the best currency we have available, at best what bitcoin can do is to store value, but it will not produce value by itself in the form of economic growth.

By doing the only thing that works, by setting reasonable taxes, avoiding overregulating industries, having a stable economy, encouraging foreign and internal investment and finally by reducing government spending on areas that are not critical and instead direct that money to other areas which could produce economic growth.

A country that devalues it's currency to gain competitive advantage will achieve it only when it has a favorable balance of trade. A country that depends on other countries for most of its raw materials, manpower, and technology will not win the global competition struggles. The reason is that the country will have to spend more on imports which will also increase the price of local goods. Neighboring countries that import less might sell cheaper goods. The government of my country has been devaluing our currency but it has had no benefit because we import almost everything we need to produce what we sell.


Adopting cryptocurrencies will do nothing to help a country with a dying economy. The government must fix the economy before they can benefit from the little crypto investment can offer. Just like El Salvador, nations can hodl Bitcoin and make a profit when the price appreciates.


The first thing is education. The government should invest in the people to enable them to acquire skills that will make them productive. Infrastructural development such as constant power supply, good roads, internet facilities, technology, etc, attract local and international investments. Political stability and good government policies are also important because investors will avoid conflict-prone nations. Any technologically advanced country will be able to make money from those that are backward.

If there is inflation, the central bank of the country will have no option than to devalue the fiat value of the nation. What the citizens will know is that export products will also become expensive as local products are becoming expensive.

No.

By increasing GDP and exporting more than importing.

if cryptocurrency or more directly, Bitcoin gets accepted in a country and they refused effecting key economic policies that's supposed to help remedy the economic situation that they are facing, it wouldn't matter if they have accepted it or not. Bitcoin is just like my money and we all know that the use of money alone doesn't help to solve a single problem. It's how you make use of the quantity of money you have in your disposal that matters in the end.

If what you're considering is that with Bitcoin being accepted as a payment medium, we wouldn't be talking about difference of exchange rate which plays a great role in the amount that's used in both importation and exportation. It can still work at this point even though Bitcoin hasn't gained the global recognition it should have gotten.

Let's say you want get an item from a firm in a country that uses dollar and you've stored your wealth in Bitcoin while they can accept your Bitcoin as a payment option. If you're directly see sending it to them, it would be a great way to avoid the effect of the difference in exchange rate between countries but the issue is when you're converting your funds from your local currency to dollar and then you will now have to buy Bitcoin with it and use it to carry out your transaction. It's going to be a counter productive strategy that wouldn't make any sense.

what happens to increased dependence on locally made goods? What about setting up an environment that's conducive for investors to thrive and carry out business? You have to know that devaluation of your local currency is a mere short termed initiative that's only feasible for the short term. If you're looking at solving real economic issues, you will have to go back to the drawing board and ensure that locally, you're able to provide at least 50% to 60% of what you need.