—”competitively devaluing their currencies so as to make their goods cheaper in foreign markets”
Long ago I heard Milton Friedman answer this very question.
In an instant, he said, ‘If that were so, the high-inflation countries would be the world’s leading exporters, and it does not happen.’
It does not happen because they are inefficient and have structural issues which got them in trouble and needing to deflate their currency to stay competitive in the first place. So any advantage gained by a competitive devaluation is often squandered...BUT, they do get a competitive advantage from it. Why do you think China buys so many T-bills? Its to keep the Yuan down so as to boost their exports.