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Depreciation in sentence

495 examples of Depreciation in a sentence

So it's not obvious how it leads to inflation in the country doing the actual printing unless it leads to a currency depreciation of that country.
Once confidence began to recover and market conditions stabilized, the East Asian economies shifted their monetary and fiscal policies toward expansion and embraced large-scale exchange-rate depreciation – efforts that enhanced their export competitiveness.
But targeting the consumer price index precludes this, because depreciation would raise the price of imported oil, food, and other tradable commodities.
There is a widespread suspicion that the US is deliberately pursuing dollar depreciation (or “currency wars,” in the words of Brazil’s finance minister).
They pointed to the big post-referendum depreciation of the pound, which promised to make British exports more competitive and offset any problems with the transition to a new trade regime.
Sterling’s substantial depreciation, moreover, augurs a significant rise in inflation, which means that the BoE will have to start raising interest rates sooner rather than later.
The PBOC also has projected a stable exchange-rate environment for this year – despite the steep depreciation of the Japanese yen, the euro, and emerging-economy currencies against the dollar – thereby promoting global stability.
On the contrary, a 1% depreciation in the bilateral exchange rate is associated with only a 0.1% depreciation in the bilateral terms of trade in the year of the depreciation.
But while headline inflation increased for a while, the factors driving that increase – a competitive depreciation of the yen and a tax increase – did not last long.
At some point, the yields on bonds and mortgages will be high enough that investors’ appetite for yield will balance their fear of exchange-rate depreciation.
In these cases, populist economics always produced cycles of inflation, currency depreciation, and instability, because global financial markets and other outsiders were skeptical from the start.
They would be compensated for inflation and currency depreciation in the US and Europe, since the payout would depend on these economies’ nominal, not real, GDP.
Currency depreciation may not only precipitate a destabilizing spiral of capital flight; it could also destabilize the banks, from which money leaving the country must first be withdrawn.
Nonetheless, the behavior of the dollar’s exchange rate during the period of quantitative easing offers no support for the proposed use of large-scale asset purchases by the ECB as a way to bring about euro depreciation.
On the other hand, juxtaposed against these positive developments are a fresh set of challenges, namely increasingly pro-cyclical liquidity provision by market makers, the rise of populism, and a temptation to rely on currency depreciation as a substitute for structural reforms.
As a result, exchange-rate depreciation could mitigate the fallout for growth, particularly in countries with credible inflation-targeting regimes.
China, for example, used nearly $500 billion of its reserves in 2015 to fight capital outflows and prevent the renminbi’s sharp depreciation; but it still has more than $3 trillion in reserves.
In fact, a closer look, taking into account accelerated depreciation and the effects on risk sharing, shows that lowering the tax rate likely reduces investment.
It then spread to financial institutions that could not cope with the losses associated with mortgage delinquencies, foreclosures, and the depreciation of housing-related securities.
In the meantime, depreciation or devaluation (which has been even more dramatic in the black market) will not boost exports much, because a single or handful of commodities – prices for which remain depressed – dominate these countries’ tradable sectors, while public and private debts are denominated in US dollars.
But the euro’s depreciation is too recent to have made much difference yet.
Historical evidence, not to mention Japan’s experience with a falling yen, suggests that it takes several quarters, or even years, before the positive impact of currency depreciation on net exports is felt.
A 10% depreciation of the Turkish lira, for example, would raise cumulative CPI inflation by 1.65-2.03
Continued currency depreciation would provide a much-needed boost to the slowing economy, just as depreciation of the yen through Abenomics has helped to lift Japan out of a protracted recession.
The currency depreciation, it was assumed, would address external imbalances, by encouraging, with the help of lower export taxes, increased production of tradable goods.
Contrary to the government’s expectations, the peso’s depreciation had a large impact on consumer prices – as critics had warned.
Just as the PBOC had intervened to dampen the appreciation of the renminbi from 2004-2014, it began intervening to dampen its depreciation after 2014.
To slow the renminbi’s depreciation, the PBOC recently signaled that it will apply a so-called counter-cyclical factor in its daily “fixing” of the currency against the dollar.
What he misses are two fundamental drivers of that depreciation: his own fiscal and trade policies.
Our simulations indicate that a non-discriminatory trade regime would magnify the potential positive impact of depreciation in the real exchange rate (as a result of the reduction in wages) on Palestinian GDP.
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