Appreciation
in sentence
789 examples of Appreciation in a sentence
Private demand was going to be crowded out one way or another, if not via currency appreciation, then via higher interest rates.
Land holdings can, in turn, be used as collateral, stimulating further credit flows and triggering successive rounds of asset-price
appreciation.
These countries now must determine how to avoid the “resource curse” – an all-too-common affliction whereby rising resource revenues lead to volatility, rent seeking, and corruption, while spurring real exchange-rate
appreciation
and wage increases, thereby undermining other economic sectors’ competitiveness.
In determining the value of total wealth, Piketty included both the income generated by assets and their
appreciation.
And have we in the West any real
appreciation
of the true nature of the Hindu or Buddhist faith?
Hollande is alarmed by the rapid
appreciation
of the euro, which has risen from $1.21 at the end of July 2012 to $1.36 in early February this year.
The ECB can curb the euro’s
appreciation
through purchases of foreign currency.
The euro’s
appreciation
lays bare the huge collateral damage that Europe’s rescue policy has caused.
But it has also led to currency appreciation, and thus to lower competitiveness for all eurozone countries, which may yet turn into a debacle for the southern eurozone and France, which are too expensive anyway, and for the euro itself.
The ECB’s rescue operations have hindered the internal depreciation – lower prices for assets, labor, and goods – that the troubled economies need to attract fresh private capital and regain competitiveness, while the euro’s
appreciation
is now compounding the challenge.
For an investor, the rate of return is the sum of the rate of
appreciation
and the rent-price ratio, so the low rent-price ratio reduces the advantage of faster
appreciation.
Simply put, North Koreans are not as isolated as they once were, and have a growing
appreciation
of their impoverishment, owing primarily to greater trade and closer connections with booming China.
Brazil, Chile, and Colombia, among others, are now confronting these powerful forces of currency
appreciation.
But this sanguine view obscures the loss of competitiveness that real
appreciation
could provoke.
Increasing capital inflows weigh heavily on import-substituting and export sectors, and may even wipe them out if the
appreciation
is substantive and protracted.
First, wealth effects are statistically small; most studies show that only about 3-5 cents of every dollar of asset
appreciation
eventually feeds through to higher personal consumption.
Second, wealth effects are maximized when debt service is minimized – that is, when interest expenses do not swallow the capital gains of asset
appreciation.
As a result, the US has effectively joined the “currency war” to prevent further dollar
appreciation.
If a single major central bank attempted to introduce higher interest rates, its economy would immediately be “punished” through currency appreciation, declining competitiveness, and falling exports, all of which would undermine aggregate demand and employment.
But a rising euro – pushed higher by excessively early monetary tightening by the ECB – implies more real appreciation, further undermining competitiveness.
Gaining a better
appreciation
of the financial linkages between countries is also important.
Their reactions range from buying up the foreign money to prevent currency
appreciation
to adopting capital controls, and, in extreme cases, to keeping the money out altogether.
They are more tolerant of human frailties, and have a more refined
appreciation
of the art of seduction.
But, when more normal growth does resume, the recent trends underpinning dollar and yen
appreciation
will disappear.
If today’s constellation of exchange rates represents some excessive dollar and yen appreciation, especially against emerging-market currencies, when it will unwind?
Indeed, the economists Ronald McKinnon and Kenichi Ohno have singled out US pressure for yen
appreciation
as a key source of the Japanese economy’s long-term deflation and stagnation – the so-called “lost decade” of economic malaise that is now well into its second.
If they yield to it, the Chinese economy, they argue, may fall into the same deflationary trap that ensnared Japan after the yen’s
appreciation
in the 1980’s – under US pressure – inflated a catastrophic asset-price bubble.
Currency appreciation, Japan argued then and China argues now, is unlikely to result in a significant current-account adjustment, which requires addressing not only China’s high savings rate, but also low savings in the US.
It will be prolonged and occasionally very tense, but eventually result in
appreciation
of the renminbi.
But there is a more fundamental issue: the Chinese authorities, in arguing that it was a mistake to allow the yen to appreciate, may be misinterpreting what happened in Japan – and thus overestimating the risk posed by currency
appreciation.
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