J-Curve Effect is a type of diagram that is the expression used to describe the initial deterioration and eventually rises to a point higher than the starting point (the letter J). J-Curve is the time path of a country’s trade balance following a devaluation or depreciation of its currency, and the effect of currency depreciation on the trade deficit depends on price elasticity of demand for exports and imports.
Related Definitions in the Project: The Commercial Definitions
