"La Gran Devaluación"

"La Gran Devaluación" refers to a period when a country’s government deliberately lowers the value of its currency relative to others, often to boost exports and economic growth. This adjustment makes goods produced domestically cheaper for foreign buyers, encouraging exports, but it can also lead to higher prices for imported items and inflation. The term is especially associated with Mexico’s economic history in the 1980s, when a series of currency devaluations aimed to address economic deficits, but also brought inflation and financial instability. Essentially, it’s a strategic, yet risky, move to manage a country's economic challenges by weakening its currency.