Can Currency Real Depreciation Drive Growth?

I. IntroductionAn outward-oriented development strategy puts pressure on the real exchange rate (RER) as a determinant of export profitability and economic growth.Competitive currencies aided African economies in the 1980s and were a key in East Asia's growth, despite their comprehensive strategies.However, structural adjustment and financial crises, including the 2008 Great Recession, have fuelled debate since the late 1990s regarding the role of RER policies (e.g.,