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Depreciation in sentence

495 examples of Depreciation in a sentence

In principle, such a depreciation against all of the world’s currencies is manageable.
What central banks cannot achieve with traditional tools can now be accomplished through the circuitous channels of wealth effects in asset markets or with the competitive edge gained from currency depreciation.
That is why I believe that these countries – and the eurozone more generally – would benefit from euro depreciation.
As the major central banks talk up monetary-policy normalization, the threats of capital flight and currency depreciation are keeping these countries’ policymakers up at night.
But all of the options that might restore competitiveness require real currency depreciation.
A return to a national currency and a sharp depreciation would quickly restore competitiveness and growth.
But that is logically flawed: even with deflation, real purchasing power would fall, and the real value of debts would rise (debt deflation), as the real depreciation occurs.
More importantly, the exit path would restore growth right away, via nominal and real depreciation, avoiding a decade-long depression.
And trade losses imposed on the eurozone by the drachma depreciation would be modest, given that Greece accounts for only 2% of eurozone GDP.
Reintroducing the drachma risks exchange-rate depreciation in excess of what is necessary to restore competitiveness, which would be inflationary and impose greater losses on drachmatized external debts.
The experience of Iceland and many emerging markets over the past 20 years shows that nominal depreciation and orderly restructuring and reduction of foreign debts can restore debt sustainability, competitiveness, and growth.
So we expect a substantial depreciation premium on US interest rates.
Yet financial markets are not pricing dollar depreciation and a rise in long-term US interest rates accordingly.
The predictable side effect of quantitative easing (QE) – that is, the purchase of domestic bonds – by the BOJ and the ECB has been the depreciation of the yen and the euro.
While this borrowing binge might end smoothly, as US Federal Reserve Chairman Ben Bernanke has speculated, most world financial leaders are rightly worried about a more precipitous realignment that would likely set off a massive dollar depreciation and possibly much worse.
Further dollar depreciation eroding supply and enhancing demand might just change that.
There is no safety valve in currency depreciation when the economy is buffeted by external shocks.
It would probably be easier to boost corporate investment, such as by introducing accelerated depreciation, tax credits to promote research and development, and more generous loss-offset provisions.
Given all of this, the ECB was entirely justified in responding (belatedly) to the 2008-2009 global recession by lowering interest rates and undertaking quantitative easing, regardless of those efforts’ contribution to a depreciation of the euro.
So the question is whether these euro-zone members will be willing to undergo painful fiscal consolidation and internal real depreciation through deflation and structural reforms in order to increase productivity growth and prevent an Argentine-style outcome: exit from the monetary union, devaluation, and default.
Though political developments in Turkey have been attracting the most attention lately, the country’s current crisis is rooted in economic weaknesses, reflected in declining investor confidence and the sharp depreciation of the lira’s exchange rate.
Of course, now that the renminbi has been accepted into the SDR basket, China must prove that it can manage dramatic currency depreciation effectively and continue to make progress toward internationalization.
A gradual depreciation would create expectations of further exchange-rate weakening, thereby fueling capital outflows and undermining companies’ willingness to use renminbi in exports and imports.
Corporate retained earnings have averaged about 3% of GDP after allowing for depreciation of existing plant and equipment.
Responding to the pound’s significant depreciation against the US dollar and other currencies following the United Kingdom’s vote in June to leave the European Union, the BoE indicated the move was a pre-emptive effort to mitigate the recessionary pull of Brexit.
With so much depreciation worldwide, why would the US want the dubious honor of a strong dollar?
Moreover, manipulation of official statistics highlights the problems of an economic model based on peso depreciation and the accumulation of reserves.
The Currency QuandaryTwo views about today's prevailing exchange rates exist: the dollar is overvalued dollar and the yen needs a deep depreciation.
Because Japan's export sector is so small, barely 10% of GDP, the depreciation would have to be enormous to stoke the entire economy.
A huge yen depreciation and sizeable decline in the dollar would hit European competitiveness and growth hard.
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