Depreciation
in sentence
495 examples of Depreciation in a sentence
But everyone cannot have a weak currency at the same time, so, in 1944, responsibility for preventing beggar-thy-neighbor
depreciation
was assigned to the International Monetary Fund, whose Articles of Agreement mandate it to “exercise firm surveillance over the exchange-rate policies” of member countries.
QE is a legitimate monetary-policy instrument, but the Fed and the Bank of England would probably not embrace it with such enthusiasm were it not for the anticipated exchange-rate
depreciation.
While individual countries obviously lack currency flexibility in a monetary union – one of Europe’s most obvious and important differences from Asia in the late 1990’s – there is nothing to prevent a
depreciation
of the euro from boosting pan-regional competitiveness.
After all, one of the main benefits of the Federal Reserve’s policy of “quantitative easing” – perhaps the only channel with a significant effect on the real economy – derives from the
depreciation
of the US dollar.
While Trump’s victory did trigger a
depreciation
of the Mexican peso, the exchange rate soon normalized and has returned to pre-election levels.
Larry Summers recently argued that in a dynamic context, the evidence for elasticity of substitution greater than one is weak if one measures the return net of depreciation, because
depreciation
increases proportionately with the growth of the capital stock.
The final component of the agreement is temporary acceleration of tax depreciation, allowing firms in 2011 to write off 100% of capital investment immediately, in contrast to the current rule, which stipulates a 50% immediate write-off, followed by
depreciation
of the remaining 50% over the statutory life of the equipment.
Furthermore, issuing dollar-denominated debt carries an additional risk and cost in the event of currency
depreciation
(or devaluation) for those with an exchange rate pegged to the US dollar.
Some regions will be hit by negative shocks that in other times and places would call for monetary ease or currency
depreciation.
Despite the FTA – and a 38%
depreciation
of the peso since 2014 – exports to the US have gone nowhere: they have stagnated overall, fallen as a share of overall exports, and become even more concentrated in traditional products such as oil, coffee, gold, and flowers.
Trade liberalization, to maintain employment and promote growth, requires an offsetting real
depreciation
of the currency.
Demand is therefore being drained out of the eurozone economies, with stronger external demand, stemming from the euro’s
depreciation
against other major currencies, unable to offset the effect on growth.
For example, governments could implement accelerated
depreciation
schemes for investment in low-carbon businesses; offer subsidies for investment in energy-efficient buildings; and create policies that favor industrial innovation aimed at reducing emissions and boosting competitiveness.
Given the resulting drag on the global economy – and especially on world trade – it is in the world’s interest to engineer a coordinated
depreciation
of the euro.
But, in fact, the
depreciation
of the dollar began well before the September 1985 meeting, and the meeting was limited in the sense that there was no discussion of monetary or interest-rate policy.
As it stands, the renminbi is facing significant
depreciation
pressure, caused largely by a surge in capital outflows.
The gap is already wide – the International Monetary Fund forecasts a $484 billion deficit this year for the US, versus a $262 billion surplus for the eurozone – and is almost certain to widen much further, owing to the euro's 20%
depreciation
since the IMF released its estimate last autumn.
These measures will almost surely lead to a further
depreciation
of the major Asian currencies.
In the case of Brazil, the IMF also told the government to prevent a
depreciation
of its highly overvalued exchange rate.
Predictably, some US industrial lobbies are again complaining that Japan is manipulating its currency, even though the yen’s real
depreciation
since 2012 has merely reversed the preceding growth-killing real appreciation.
The renminbi remains highly overvalued, despite August’s modest 3% nominal
depreciation
against the soaring US dollar.
Further
depreciation
of the renminbi seems necessary if China is to bolster its flagging economic growth and avoid a long-term “Japan trap.”
A month after the renminbi’s 3% depreciation, Chinese President Xi Jinping commented that, “Given the current economic and financial conditions at home and abroad, there is no basis for sustained
depreciation
of the RMB.”
Don’t let the renminbi depreciate, it wrote, for four reasons:
depreciation
might provoke a currency war in Asia;China’s companies are awash in dollar-denominated debt;
depreciation
might lead to renewed US charges of currency manipulation; and
depreciation
might reverse China’s progress in making the renminbi an international reserve currency.
But “US efforts to get China to shed these objectives sound hypocritical when the United States seems to be opting for excess stimulus itself....[I]f the People’s Bank and the Fed tightened in coordination with most central banks, domestic [Chinese] concerns about competitive
depreciation
would be muted...”China’s policy of export subsidies through currency manipulation was always bound to become unsustainable in the long run because it was bound to generate substantial domestic inflation.
This
depreciation
should have helped our merchandise exports, and yet it coincides with their relative underperformance, because other currencies have depreciated against the dollar, too.
Currency
depreciation
was driven by a website that reported on the exchange rate.
That
depreciation
is larger than the likely tariffs the US would impose on Mexican goods if it left NAFTA.
Meanwhile, massive corruption is devastating Egypt’s economy, with growth falling by half in the last two years, accompanied by rising unemployment, higher inflation, and currency
depreciation.
At the same time, Europe’s massive shift to a trade surplus (a key factor underpinning the region’s new-found stability) and the Japanese yen’s sharp
depreciation
are among myriad factors squeezing countries seeking to rein in current-account deficits.
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