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Why was an undervalued currency good for germany

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Reference no: EM131737568

Question: Shortly after World War II, the US occupying forces set the value of the Dmark and the yen below equilibrium values in Germany and Japan. Over the next 25 years, those countries both staged an amazing recovery. Other factors were involved, but the undervalued currencies helped to stimulate their exports. Why was an undervalued currency good for Germany and Japan, but not for the US?

Reference no: EM131737568

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