Devaluations can do other unintended damage as well. In a country that lacks strong manufacturing industries, the cheaper currency can do little to promote exports, earn foreign currency, and help balance the current account deficit. This is the classic vulnerability of commodity-exporting countries, though recent research shows that, compared to ten or twenty years ago, it is getting more difficult even for manufacturing powers to capitalize on a cheap currency. The reason is the recent global integration of supply chains, which means that many manufacturers buy a significant share of their
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