Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: distinction between revaluation and devaluation of a fixed exchange rate
Learning Objective/s:
  • Describe the concepts of revaluation and devaluation in a fixed exchange‑rate regime.
  • Explain the macro‑economic motives that lead a government to revalue or devalue its currency.
  • Analyse the short‑run effects of each adjustment on imports, exports, inflation and the trade balance.
  • Apply the mechanism of foreign‑reserve operations to illustrate how a central bank implements a revaluation or devaluation.
  • Compare and contrast the outcomes using a simple numerical example.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck summarising key points and comparison table
  • Handout with a short numerical exercise on exchange‑rate adjustment
  • Calculator or spreadsheet software for student calculations
  • Whiteboard markers and flip chart for group discussion
 Introduction:
Begin with a quick poll: “If our country’s currency suddenly became cheaper abroad, how would that affect the price of imported phones?” Connect this to prior learning on supply‑and‑demand in foreign‑exchange markets and state that today students will identify why governments deliberately move the peg up or down and what the immediate consequences are.
Lesson Structure:
  1. Do‑now (5’) – Students answer the poll question on sticky notes; teacher collects responses to gauge misconceptions.
  2. Mini‑lecture (10’) – Define revaluation and devaluation, outline motives and mechanisms using slides and the comparison table.
  3. Guided analysis (12’) – In pairs, students work through a numeric example (e.g., 20% devaluation) on the handout, calculate new import prices and discuss trade‑balance implications.
  4. Class discussion (8’) – Groups share findings; teacher highlights opposite effects on exports, imports, inflation and policy tools.
  5. Concept‑map activity (10’) – Teams create a visual map linking motives, mechanisms, and outcomes for each adjustment; peer review.
  6. Check for understanding (5’) – Quick exit quiz (3 multiple‑choice questions) via Kahoot or paper.
Conclusion:
Summarise that revaluation lifts the currency, making imports cheaper and exports pricier, while devaluation does the opposite, affecting inflation and competitiveness. Ask students to write one real‑world example of each adjustment on an exit ticket. For homework, assign a short case‑study analysis of a recent currency revaluation or devaluation.