Nominal devaluation leads to real devaluation, impacting trade balance in Papua New Guinea.
The article explores whether nominal devaluation leads to real devaluation in Papua New Guinea. The researchers used various statistical tests to analyze the relationship between nominal and real exchange rates. The findings show that nominal devaluation does indeed result in real devaluation, both in the short term and in the long run. This information can help policymakers understand the effects of devaluation on the economy of Papua New Guinea.