fundamental disequilibrium

Quick Reference

The condition of the balance of payments under which the original rules of the International Monetary Fund (IMF) allowed countries to devalue their currencies. The IMF did not produce a formal definition of fundamental disequilibrium but it was widely assumed that it meant severe balance-of-payments problems which could not be cured without devaluation. In the event the rules proved unenforceable.

Subjects: Economics.

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