This video explains the Marshall-Lerner Condition for determining whether a depreciation of a nation's currency will improve or worsen its current account balance. The MLC is an application of the total revenue test of price elasticity of demand, and applies to the sections of the Econ course on Balance of Payments and Exchange Rates.
Very useful. Using in class to reinforce the theory.
50davidy 3 weeks ago
Great job!
CivilianJones 2 months ago
This is PERFECT! I needed just this to be able to write my economics commentary, which is actually about the Swiss Franc target rate. Thanks! :D
ROT12321 3 months ago