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Countries Looking to Devalue Their Way to Growth Have a Big Problem, HSBC Says

Currency depreciations just don't have the impact they used to.
Beggar thy emerging market neighbor.

Beggar thy emerging market neighbor.

Photographer: Brent Lewin/Bloomberg

Economists at HSBC have a message for monetary policymakers who are hoping their stimulus will help devalue their local currencies and spur exports: Good luck with that.

According to HSBC Global Chief Economist Janet Henry and Economist James Pomeroy, a depreciating currency just doesn't pack the same punch it used to.