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Home→The Westburn Dictionary of Marketing→L→leads and lags

leads and lags

Definition:
A phenomenon which occurs when a currency is under pressure and threatened with devaluation. The crisis may be increased by a change in the pattern of payments for exports and imports. Any importer in the country who is due to make a payment in another currency may prefer to do so ahead of the due date lest he should incur extra costs by delay if his own currency is devalued: conversely any overseas buyer who is due to pay an account in the threatened currency will delay payment as long as possible, hoping that a devaluation will reduce the expenditure in his own currency.

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [James M. Livingstone and Michael J. Baker],.