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If you still have your own currency, however, you wouldn't have to go through the protracted pain of cutting wages: you could just devalue your currency — reduce its value in terms of other currencies — and you would effect a de facto wage cut.
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The European Central Bank, which sets monetary policy for the 12 nations adopting the euro as a common currency, reduced its main refinancing rate to 3.25percenttodayay from 3.75percentt.
A stronger Japanese currency reduces the value of profits earned in dollars and makes Japanese cars more expensive to shoppers overseas.
Thus, soccer works, and so do roaming cellphones, the euro single currency, reduced border controls -- anything, in fact, that allows a new, younger generation of Europeans to crisscross a playground from the Baltic to the Mediterranean.
Under the tutelage of the International Monetary Fund (IMF) and the World Bank since the mid-1980s, Sao Tome and Principe has tried to restore a functioning economy by devaluing its currency, reducing the budget deficit, privatizing formerly nationalized companies, attracting foreign investment, and removing price subsidies and controls.
Again, they are presented in highly rational, mostly economic, terms: attracting foreign currency, reducing the medical professional 'brain drain' of health workers and providing extra resources for investment into the local health system [ 48].
Another challenge faced by Bethlehem is the economic collapse of some Asian countries, whose cheap currencies reduce the price of their exported steel.
Most investments in the region in licenses and infrastructure were made in dollars, but revenue in depreciating local currencies reduced the dollar value to BellSouth.
The economic crisis has reduced demand for Sony's products, like televisions and cameras, movies and PlayStation 3 game consoles, while the rise of the yen against other currencies reduces the value of its overseas sales when the proceeds are converted.
"Most games on Facebook have implemented their own virtual currencies, reducing the need for a platform-wide virtual currency," the company said in a blog post.
"Since we introduced Credits in 2009, most games on Facebook have implemented their own virtual currencies, reducing the need for a platform-wide virtual currency," the firm's product management director Prashant Fuloria told developers.
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