Currency devaluation boosts exports, but slow response limits economic impact.
Devaluing a country's currency can help increase exports and improve the current account balance. The speed of response to currency devaluation affects the success of this strategy, with a slow response leading to limited benefits. The J curve analysis helps understand this relationship, with a fast response time indicating higher success. In Turkey, high current account deficits are linked to unsustainable growth rates, with real exchange rate parity proposed as a more reliable explanation for capital movements during economic crises.