To which Iâd add that the test of a first-rate capacity for empathy is the ability to hold two opposed positions in mind at the same time and still retain the ability to think for yourself. Shoe-shifting, the ability to put yourself in the other guyâs shoes is a fundamental skill of extraordinary power. Itâs almost as magical as shape-shifting in fantasy in sci-fi. Itâs the scientific method applied to social life.
How it works/Example: A currency is considered devalued when it loses value relative to other currencies in the foreign exchange market. A currency 's devaluation is the result of a nation's monetary policy.A central bank can make the conscious effort to make its currency less valuable.f Country XYZ's currency is set at a fixed exchange rate of 2:1 to the U.S. dollar and, due to a weak economy, XYZ cannot afford to pay the interest rate on its debt outstanding, XYZ may devalue their currency. This means the central bank of XYZ will declare their fixed exchange rate to be 10:1 to the U.S. dollar.
Chinaâs authorities have taken a shock decision to let the yuan-also known as the renminbi-devalue by over 2pc against the US dollar as they try to fend off slowing growth. The resulting fall on Tuesday was the biggest one-day drop in the currencyâs value since January 1994.A further devaluation on Wednesday pushed the yuan down further. The move has reverberated around the world, with the FTSE 100 closing down 1.1pc, driven by a drop in miners.he PBoC has lowered interest rates four times since November to support the Chinese economy, which is expected to grow at around 7pc this year-the slowest expansion since 1990. But with the yuan devaluation, it looks like China has reached for stronger measures to support its GDP.