Appreciation
in sentence
789 examples of Appreciation in a sentence
Growing
appreciation
of Obama nowadays may reflect the shortcomings of Clinton and Trump – the most disliked presidential candidates in US history.
American Congressmen view the Chinese as archetypal currency manipulators, but the Swiss have introduced a firm cap on the franc’s
appreciation.
Showing no
appreciation
of the time-honored linkage between trade deficits and macroeconomic saving-investment imbalances, the president continues to fixate on bilateral solutions to a multilateral problem – in effect, blaming China for America’s merchandise trade deficits with 102 countries.
When export growth softened in mid-2012, they halted the
appreciation
of the renminbi and rolled out additional costly capital projects like the high-speed rail line – the world’s longest – that was recently completed.
For starters, while it would likely cause the renminbi to strengthen, the consensus in China is that the current exchange rate is not far from the equilibrium level, meaning that the
appreciation
would likely be moderate.
Likewise, although renminbi
appreciation
would diminish export growth, the slowdown would probably not be dramatic, given that China’s export sector is dominated by the processing trade (specifically, the assembly of intermediate inputs imported from countries like Japan and South Korea).
Given that the liquidity flowing into China over the last several years was increasingly short-term capital aimed at exchange-rate and interest-rate arbitrage (so-called “hot money”), there may be a surge in capital outflows when
appreciation
expectations have disappeared.
A flexible exchange rate dictated by market forces would eliminate the opportunities for currency speculators to make one-way bets on renminbi appreciation, thereby diminishing the stock of hot money that currently accounts for the bulk of China’s capital-account surplus.
They also cite investment opportunities in emerging markets, and make the obvious point that if China and India stay on track, their economies' relative weight in the world will double in the next decade or so, as rapid real growth is accompanied by
appreciation
in their real exchange rates.
A symmetric adjustment has also occurred in China, via real
appreciation
of its currency and higher prices for labor and land.
And they can be disastrous to exporting economies, which risk rapid currency
appreciation
and thus a loss of competitiveness.
The tumult of the Maoist period instilled in a broad cross-section of people a profound
appreciation
for stability, and a yearning to be left alone.
And, because there is no change in prices paid by American consumers or received by American exporters, that tax is borne by foreign producers, who, owing to the dollar’s appreciation, receive less in their own currencies for their exports to the US.
Whereas equities have dividends, bonds have coupons, and homes provide rents, gold is solely a play on capital
appreciation.
Furthermore, the sharp
appreciation
of the real’s exchange rate – driven by high global commodities prices – has diminished export competitiveness.
All the opportunities that the US market presented to Mexico could not offset the consequences of policy mistakes at home, especially the failure to reverse the real
appreciation
of the peso’s exchange rate and the inability to extend the productivity gains achieved in a narrow range of export activities to the rest of the economy.
Similarly, Trump’s fiscal policies would also weaken the dollar over time – after an initial significant
appreciation
– as the substantially higher deficit spending would be financed either with easy money or bond issues that increase US sovereign risk.
China and other sovereign holders of US debt face capital losses over and above those implied by the inevitable
appreciation
of their currency.
For example, private investors based in developing countries often assess risk differently, having a more refined
appreciation
of political risks.
From 2009 to 2011, with advanced economies pursuing near-zero interest rates and quantitative easing, yield-hungry investors flooded countries like South Korea and Brazil with hot money, fueling currency
appreciation
and inflating asset bubbles.
During the bonanza years, avoiding or leaning against currency
appreciation
was probably the major challenge that many central banks faced.
Moreover, the dollar’s
appreciation
relative to other currencies has reduced import costs, putting competitive pressure on domestic firms to reduce prices.
For example, Japanese economists argue that the Plaza Agreement, which called for “orderly appreciation” of non-dollar currencies against the dollar, was a natural outgrowth of high national income.
Large capital inflows led to overheating and inflation, asset-price bubbles, and rapid currency
appreciation.
Indeed, the Fed decided to delay raising interest rates partly because US policymakers expect dollar appreciation, by lowering import prices, to undermine their ability to meet their 2% inflation target.
A sharp 10%
appreciation
of the US dollar, for example, would reduce inflation for non-fuel imports by 4.4% cumulatively over the next 2-3 quarters, but would have only a negligible impact on inflation after that point.
If one accounts for consumer goods expenditure on imports, that 10%
appreciation
would lower inflation, as measured by the consumer price index (CPI), by just 0.5 percentage points in the first two quarters.
But while it is true that some global developments – especially falling commodity prices, and perhaps also slowing emerging-economy growth and rising financial volatility – may push down inflation, dollar
appreciation
will not, at least not in any meaningful way.
Both Japan and Germany were slow in liberalizing their domestic financial systems as they tried to limit capital inflows for a substantial period of time in order to avoid rapid currency
appreciation
and the consequent erosion of their export competitiveness.
Standing on the streets of one of these vibrant cities, one gains a deeper
appreciation
of recent data on China’s rising domestic consumption.
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