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However, the fund warned that this (relatively) benign outcome depended on interest rates falling and a country's currency depreciating to boost exports.
Companies surveyed by the Bank of Japan are basing their 2002 profit forecasts on the yen depreciating to near 126, although the dollar now buys about 119 yen.
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They took out a subprime mortgage for $280,000, but their house has depreciated to a value today of $200,000.
"It makes sense for the national banks of these countries to let currencies depreciate to some extent to keep national competitiveness," he said.
The central bank let market forces operate freely, allowing the rupiah to depreciate to the point where exports have become competitive again.
Mugur Isarescu, the governor of the National Bank of Romania, said in an interview that maintaining its own currency had given Romania the flexibility to set interest rates, control liquidity and allow the currency to depreciate to help rein in the deficit.
Sunday's Global Times quoted "experts and insiders" as saying that the "Chinese yuan has limited room to appreciate further and may be depreciated to foster the country's struggling exports and the broader economy".
The yuan needs to depreciate to stem the tide of factory closures in China's southern coastal areas, said Shaun Rein, head of China Market Research Group.
Membership of the euro means they don't have the option of allowing their currency to depreciate to readdress that problem.
Similarly, if you owned lovely rental units, which youve depreciated to the fullest, you take that property with its reduced basis.
Finally, the rate at which the Nigerian Naira depreciated to the U.S. Dollar adversely affects the life expectancy of the population.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com