Exchange-rate changes and policies crucial for economic balance in open economies.
The article discusses how changes in exchange rates and economic policies affect open economies. It emphasizes the importance of maintaining a balance in the current account to avoid accumulating excessive debts or claims. The impact of devaluation on the current account depends on the accompanying economic policies. In an open economy, it is crucial to ensure a balance in the current account over time to prevent unsustainable deficits or surpluses.