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Abstract
A theoretical model is reviewed and used to evaluate the effects
of currency devaluation or revaluation on production, consumption,
trade, and price in both exporting and importing countries.
The model is applied to the effects of devaluation on the agricultural
sector, when supply and demand are inelastic. Based on the
analysis, devaluation will have only a small impact on agricultural
trade. What effect there is will be primarily on price rather
than quantity.