ABSTRACT
Macroeconomic policy is the influence of the state on the economy as a whole and, in particular, on national income, consumption, investments, savings, revenues and expenditures of the state budget, trade balance and balance of payments, demand for money and supply of money, employment and unemployment, and the like. In a fully open economy, domestic-market oriented economic activity is integrated with foreign-market oriented activity, both being treated alternatively by economic subjects. Devaluation makes foreign capital more interested in investing in the devaluation-making country, since a foreign investor receives more units of the domestic currency for one unit of the foreign currency than before devaluation. Revaluation exerts a negative impact on economic growth, discouraging foreign capital from investing in a revaluation-making country, thus weakening growth trends, which leads to disequilibrium in the balance of payments in the long-term. Forms of state influence on the exchange rate depend on the exchange rate system effective in a given country.
