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Depreciation in sentence

495 examples of Depreciation in a sentence

It is measured in “net” terms to strip out the depreciation associated with aging or obsolescent capacity.
The volatile stock market and the renminbi’s “surprise” depreciation are signs of imminent economic collapse, according to this view, as risky investments and high levels of government debt put the brakes on decades of turbo-charged output growth.
If the resulting real exchange rate is not too far from that of the base year, the market is said to be in equilibrium, and little or no further depreciation should be expected.
Take the same country’s current-account deficit and ask how large a real depreciation is needed (making some assumptions about trade elasticities along the way) to close that external gap.
If the recent real depreciation achieves that threshold, no further change in the exchange rate should be expected.
After the depreciation, the collateral, valued in dollars, is worth less.
They point to the pound’s recent depreciation as a leading indicator of the financial instability that would accompany a British exit (or “Brexit”).
Then there is the question of how emerging-market policymakers respond to the turbulence: Will they raise rates to stem inflationary depreciation and capital outflows, or will they cut rates to boost flagging GDP growth, thus increasing the risk of inflation and of a sudden capital-flow reversal?
Even after depreciation, that $130 billion of extra annual income is capitalized at about $1.5 trillion of wealth, so the current-account deficit, even at $1 trillion, is not overwhelmingly large.
While the peg gives GCC currencies credibility, it has prevented real depreciation and fails to reflect the deep structural changes in GCC members’ economic and financial links over the past three decades – particularly the shift away from the United States and Europe and toward China and Asia.
To avoid ruble depreciation and inflationary pressure, the CBR raised its benchmark interest rate to 8% (from 5.5% before the Crimea crisis).
With slowing world economic growth, US financing needs could cause a drop in investors’ confidence in the future of US-based assets, precipitating a sharp dollar depreciation.
By contrast, in the case of debt owed to foreigners, higher interest rates lead to a welfare loss for the country as a whole, because the government must transfer resources abroad, which usually requires a combination of exchange-rate depreciation and a reduction in domestic expenditure.
Moreover, the currency depreciation in the wake of the Bank of Japan’s efforts to increase the annual inflation rate to 2% is expected to benefit exporters, though a substantial effect on the trade balance is yet to be seen, probably owing to higher import costs.
When it became clear that the “Remain” camp had lost, the pound’s slide seemed to be on track to match the historic 14% depreciation of the 1967 sterling crisis.
Moreover, if China decided to sell its dollar holdings, the bond market would discount US government securities, raising US long-term interest rates and canceling much (perhaps all) of whatever stimulus has been provided by the dollar's depreciation.
Indeed, the impact of real exchange-rate depreciation on growth is likely to be short-lived unless increased corporate profits in the export sector lead to higher household consumption and investment.
And yet risks to financial and fiscal stability could arise if higher inflation and currency depreciation were to spoil investors’ appetite for Japanese government bonds, thereby pushing up nominal interest rates.
The dilemma is that any depreciation of sterling increases the level of imported inflation that is not offset by spare capacity in the economy.
But, sterling depreciation is supposed to re-balance the economy by increasing exports.
But if the current exchange-rate peg to a basket of currencies fails to anchor the renminbi and prevent sharp depreciation, the deflationary consequences for the world economy will be profound.
The reforms China needs cannot be accomplished in a slump, or by a large exchange-rate depreciation that deflates the world in a vain effort to turn back the clock to an era of export-led growth that stagnant demand in the West has rendered nonviable.
While one can argue that one-off devaluation was risky – as it could have triggered a panic – gradual depreciation should have started earlier than it did.
Moreover, inflation rates are not high and hence will not rapidly eliminate this real depreciation.
Unit labor costs fell in Germany and other parts of the core (as wage growth lagged that of productivity), leading to a real depreciation and rising current-account surpluses, while the reverse occurred in the PIIGS (and Cyprus), leading to real appreciation and widening current-account deficits.
This implies significant easing of monetary policy by the European Central Bank; provision of unlimited lender-of-last-resort support to illiquid but potentially solvent economies; a sharp depreciation of the euro, which would turn current-account deficits into surpluses; and fiscal stimulus in the core if the periphery is forced into austerity.
The bitter medicine that Germany and the ECB want to impose on the periphery – the second option – is recessionary deflation: fiscal austerity, structural reforms to boost productivity growth and reduce unit labor costs, and real depreciation via price adjustment, as opposed to nominal exchange-rate adjustment.
So, to prevent a spiral of ever-deepening recession, the periphery needs real depreciation to improve its external deficit.
This would enable them to revive economic growth and competitiveness through a depreciation of new national currencies.
Its purpose is not to encourage the depreciation of the yen, despite complaints about the yen’s depreciation.
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