Economics A-Level
Internal devaluation
What Internal devaluation means in Economics A-Level, as defined for AQA.
Definition of Internal devaluation
Check what you remember
Read the wording for your board, then hide it and explain Internal devaluation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A painful adjustment such as wage cuts, relied upon when a country facing a localised recession cannot lower interest rates independently.
Topics that use Internal devaluation
- Exchange rate systems (AQA A-Level)
Related terms
- Appreciation
- Asymmetric economic shock
- Balance of payments
- Currency union
- Depreciation
- Fixed exchange rate systems
- Floating exchange rate systems
- Freely floating exchange rate system
Using Internal devaluation in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge