# Devaluation, fiscal (fiscal devaluation)

- Canonical URL: https://www.gerhardmerk.de/devaluation-fiscal-fiscal-devaluation
- Post ID: 587922
- Modified: 2023-07-25T21:00:24+00:00
- Language: en

## Definition

An attempt to use the tax system to replicate the effect of a deterioration in the exchange rate in those countries suffering from persistent current account deficits due to the common currency in a currency area. Essentially, this can be achieved by - raising import taxes and - lowering duties on export goods. However, such measures cannot replace an overall adjustment of the country to the level of international competitiveness. - See Balassa index, fiscal pact, trade balance, import content, degree of openness, structural change, terms of trade, growth contribution, competitiveness status, international, balance of payments. - Cf. ECB Monthly Bulletin, December 2011, pp. 110 et seq. (presenting individual fiscal measures; weighing their success). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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