Recent examples of exchange-rate depreciation (United Kingdom, Japan, emerging countries) show that in contemporary economies, it is better to have a strong currency

Exchange-rate depreciation (from 2016 in the United Kingdom, from 2013 in Japan and in emerging countries) has resulted in sharp fall s in growth in the countries concerned due to the effect of imported inflation on real wages and interest rates. This can be attributed to the low price elasticity of foreign trade in volume terms and to central banks’ inflation targeting. The upshot is that , in contemporary economies, it is better to have a strong currency.