Why does dollar devaluation cause any exportable good to become more expensive?
If you’ve got a surplus of the commodity, then devalueing your currency makes the commodity cheaper for foriegners, but it should stay the same price for buyers back home. If you *don’t* have a surplus of the commodity, then devalueing your currency makes the commodity cheaper for foriegners, such that if a bidding war happens, they can bid more, which pushes the price up at home. So it all depends on if there’s a surplus of the commodity or not. Food is a bit of an exception, because it’s protected in ways that you can’t even imagine, and justifiably so, because no indistrialized nation stays an industrialized nation unless it can guarantee food. To understand the logic of that, you might have to actually go truly hungry for awhile to see how much it changes everything. France is self-sufficient in food. So is Italy. So is Holland, even with a population density of 900 people per square mile. England might *look* like it’s not self-sufficient, but it’s got ties through the British Com
