English Dictionary

Marshall-Lerner condition

noun

(economics) The condition that an exchange rate devaluation or depreciation will only cause a balance of trade improvement if the absolute sum of the long run export and import demand elasticities is equal to, or greater than 1.

The Marshall-Lerner condition states that a depreciation of the domestic currency will improve the trade balance if the sum of the price elasticities of demand for exports and imports is greater than one.

意味（1）

(economics) The condition that an exchange rate devaluation or depreciation will only cause a balance of trade improvement if the absolute sum of the long run export and import demand elasticities is equal to, or greater than 1.