ABSTRACT
This chapter looks at the main elements in any devaluation decision, so that we can have a better understanding of our firms’ decision procedures. With information about elasticity of demand and about the rate at which general demand conditions are changing, it will be easy for the firm to take whatever decision is most appropriate, given the devaluation objectives the firm has, except in various circumstances. The first and most obvious classification is in terms of the kind of decision taken. The second way of classifying the devaluation decisions is by the speed with which they were taken. The third way of classifying devaluation decisions is in terms of the organisational arrangements within the firm. The apparent need for speed then had to be offset against the fact that some relevant information would not be available until after the decision was taken.
