Your promises of help to the people during the economic crisis convince voters to reelect you. Immediately after the election, you announce a devaluation of the CFA franc, which is set to the value of the French franc. The old value was 50 CFA francs per French franc. Now it is 100 CFA francs per French franc. Devaluation comes as a shock. People used to buying imported goods are unhappy because their purchasing power is lower.

Ms. Chang, the IMF economist, explains that people here are now living within their means. Before the devaluation, exporters were subsidizing people by making imports cheaper than they should have been.

Here are the good things that happen because of the devaluation:

• Exports are now competitive again without changing wages or taxes. The Trade Ministry reports that exports increase enough to continue payments on your foreign debt. Because imported goods are more expensive now, local industries expand to make and sell cheaper substitutes for imported products. That employs more people and adds to the size of the domestic economy.
  
  
• Tourism increases because foreigners visiting your country don’t have to spend so much of their money on hotels and services. This increases the amount of foreign exchange coming into the country.

Because you delayed until after the election, you do not receive the IMF loan to help with foreign exchange. It takes several years for the economy to fully recover.