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What does The J-Curve mean?

帮考网校2020-10-26 11:28:50
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The J-Curve refers to a graph that shows the relationship between two variables, where the curve initially dips downward before rising sharply to form a "J" shape. In economics, the J-Curve is often used to describe the impact of currency devaluation on a country's trade balance. Initially, a devaluation may cause a country's trade balance to worsen as imports become more expensive and exports take time to adjust. However, over time, the country's exports become more competitive, leading to an improvement in the trade balance, which is reflected in the upward slope of the J-Curve.
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