The country has a current account deficit when it is at the starting point (the very left side of the curve) of the J curve. The exchange rate of the currency is lowered to rectify this. In the short term, because of existing contracts and imperfect knowledge, the deficit worsens to the minimum point on the curve. However, int he long term, if the Marshall-Learner condition is fulfilled, exports revenues will begin to increase and import expenditure will start to fall. The current account deficit will get smaller, moving in the positive section of the J-curve.
