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Does devaluation hurt private investment? The Indonesian case (英语)

Devaluation affects investment because of its effect on the real supply price of capital goods; the real price of imported inputs, w���������������hich together with capital goods are used to produce output; the real product wage and thereby profitability and investment; real income, which affects the demand for domestically produced goods; and nominal and real interest rates, which in turn affect investment. This paper discusses the channels between...
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