Image:J curve.svg

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J_curve.svg‎ (SVG file, nominally 316 × 200 pixels, file size: 9 KB)

[edit] Summary

Description	The J curve shows the effect of a devaluation of a currency on the net export (exports minus imports). When the devaluation takes place at t the net export falls from A to be, since the level of import is unchanged, but the currency is worth less. As time goes on the net export will gradually change since consumers buy less imported goods, and other countries buy more goods from the country do to the lower real price. At C the net export break even. With time the net export will find equilibrium.
Source	I created this image entirely by myself.
Date	2008-06-06
Author	Rasmus (talk)
Permission (Reusing this image)	See below.
Other versions	The image is made with PGF. The original Tikz code can be found here: [1]

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Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.2 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts.

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	Date/Time	Dimensions	User	Comment
current	09:58, 6 June 2008	316×200 (9 KB)	Rasmus.p (Talk \| contribs)	({{Information \|Description=The J curve shows the effect of a devaluation of a currency on the net export (exports minus imports). When the devaluation takes place at ''t'' the net export falls from ''A'' to be, since the level of import is unchanged, but the currency is worth less. As time goes on the net export will gradually change since consumers buy less imported goods, and other countries buy more goods from the country do to the lower real price. At ''C'' the net export break even. With time the net export will find equilibrium. \|Source=I created this image entirely by myself. \|Date=2008-06-06 \|Author=~~~ \|other_versions=The image is made with PGF. The original Tikz code can be found here: [http://www.fauskes.net/pgftikzexamples/j-curve/] }})