J-curve

J-curve

Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short run.

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 ?
For investors, this Fund offers the opportunity for diversified exposure to private equity, with the potential to mitigate the typical private equity j-curve and minimize blind pool capital risk.
The Bank of Canada's focus is on the dismal payrolls data and the fall in inflation expectations as it waits for the logic of the J-curve (exports to US
CCAA - Contact Center Assisted Automation J-Curve Technologies Value-add Technical Support and Customer Service LiveOps LiveOps CXEngage Monet Software Inc.
In this context, this article investigates the dynamic nature of Korean bilateral trading by investigating the J-Curve under the changing environment of Korean currency exchange rates.
The results revealed that J-curve phenomenon exists in all oil importing countries of the group.
REGARDS also turned up evidence supportive of the existence of the long-controversial J-curve, with an increased rate of adverse events noted in subjects with an SBP below 120 mm Hg, added Dr.
Now, amidst the debate about economic reforms in Europe, another kind of J-curve effect is upon us.
J-Curve Technologies, a leading provider of shared technical and customer support services, announced today several members of its leadership team will be attending the Channel Partners Conference & Expo.
Results show that there is a clear J-curve effect and also Marshall-Lerner condition holds.
There are three distinct methods of investigating the link between trade balance and real exchange rate or terms of trade, which includes testing the Marshall-Lerner condition, the J-curve, and the S-curve.
You will be dizzied and dazzled by the philosophies of War Porn, Social Jetlag, Compassion Fatigue and The J-Curve.
Darryl Francis notes in the May 28 Sunday (London) Times the following 96-letter pangrammatic window in an article headlined 'Global Warming Might Not Be So Bad, if We Keep Our Cool': "in his ne[w book Revenge of Gaia, he scares himself into the apocalypse lobby by gazing at the ubiquitous J-curve of carbon diox]ide emissions as it shoots off the top of the graph".