devaluación compensada

[Nightyume]

Devaluación compensada es cuando

La devaluación que se acompaña con una baja de aranceles para no encarecer los productos que se importan y con un incremento de retenciones a la exportación para reducir el deficit.

But I cannot find the English equivalent. I have found articles which talk about using currency devaluation in this manner but they do not give the process an actual name. Is there one?

Thanks in advance, enjoy your weekend =)

 

[Joe Esquire]

The term, and the policy, as defined above, have been primarily used in Argentina since the mid-1960’s as a result of strong and recurring currency devaluations due to economic and foreign debt crises. Outside of Argentina, while similar policies may have been used, it is not, to my knowledge, a predefined, stand-alone, economic term with a specific meaning, (as it appears to have been used in Argentina), nor does it appear as a defined term in the literature of the World Bank or the International Monetary Fund.

The reason being is that the range of “compensating” measures to a currency devaluation can vary greatly depending on the severity or the purpose of the situation, and on the policy tools available to the affected government, beyond the tax measures noted in the above definition.

In related literature in English, tariffs and export duties are broadly defined as “border adjustment taxes”, and compensating measures to currency devaluations are often called “offsets.”

Thus, I would offer: “Devaluation offset by border adjustment taxes”

 

[Nightyume]

Thanks. Knowing that there is no set English equivalent helps a lot. And thanks for your suggestion, I'll take it into consideration (the term is used several times so I'll try to shorten it but it will help).

Thanks!

 

[Joe Esquire]

You are welcome.
Below is an academic paper on the notion of offsets between foreign currency rates and tariffs.

https://www.piie.com/system/files/documents/wp20-1.pdf

JE