J Curve

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J Curve

1. In charting, the theoretical trend of a country's trade balance after the devaluation of its currency. After a devaluation in currency, there is often a slight increase in the trade deficit, but the long-term effect is a trade surplus due to the fact that a good sold in a devalued currency makes a good less expensive for international buyers. This is represented graphically as a curve that briefly dips below the x-axis, representing time, before turning upwards, resembling the letter J. On this graph, the y-axis represents the trade balance.

2. In equity funds, the theoretical trend of the internal rate of return over several years. Most funds operate at a loss at their beginning, due in part to their start-up costs. Later, if the fund is successful, the internal rate of return rises significantly. This is represented graphically as a curve that briefly dips below the x-axis, representing time, before turning upwards, resembling the letter J. On this graph, the y-axis represents the internal rate of return.
References in periodicals archive ?
Therefore, the short-run deterioration and long-run improvement of trade balance after depreciation graphically resembles the letter "J" and is known in literature as the J-curve phenomenon.
Bahmani-Oskooee and Kutan [12] is the most comprehensive study of the J-curve phenomenon in emerging Europe.
Bahmani-Oskooee and Malixi (1992), who test the J-curve phenomenon for several developing countries, include Brazil in their sample and find support for the J-curve in Brazil.
Accordingly, there has been a major shift toward using disaggregated data while investigating the J-Curve phenomenon.
Considering the magnitude of this crisis and its potential impact on Korean trading patterns as well as implications for the J-Curve phenomenon.
The results revealed that J-curve phenomenon exists in all oil importing countries of the group.
Keywords: J-Curve Phenomenon, Oil Price Shock, D-8, Vector Auto Regression
For one thing, growing evidence suggests the long-debated J-curve phenomenon does exist and that drug regimens that reduce blood pressure to 120-125/70-75 mm Hg or below may be accompanied by an increase in coronary events.
He focused on diastolic pressure because that is the pressure that perfuses the myocardium, and inadequate myocardial perfusion probably causes the J-curve phenomenon.
He focused on diastolic pressure because that is what perfuses the myocardium, and inadequate myocardial perfusion probably causes the J-curve phenomenon.
The results confirm the existence of the j-curve phenomenon for Pakistan.