J-curve

Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short-run. The New York Times Financial Glossary

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Theory that says a country's trade deficit will initially worsen after its currency depreciates because higher prices on foreign imports will more than offset the reduced volume of imports in the short run. Bloomberg Financial Dictionary

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J-curve J-curve [ˈdʒeɪ kɜːv ǁ -kɜːrv] noun [countable]

ECONOMICS a line on a graph in the shape of a letter J, which represents a slight fall in the level of something followed by an increase:

• Analysts are talking about a J-curve effect, with a slight downturn in share prices followed by a recovery later.

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J-curve UK US noun [C] GRAPHS & CHARTS

► a line on a graph in the shape of the letter J which shows something drop slightly and then increase quickly to a higher level than at the start: »

The J-curve shows investors that private equity funds tend to deliver negative returns in early years before the investment gains of later years.