Depreciation
in sentence
495 examples of Depreciation in a sentence
Japan’s Abenomics is also important for some countries, as the sharp
depreciation
in the value of the yen puts pressure on Korea in particular and on Japan’s Asian competitors in general.
After all, Argentina’s external debt was also considered relatively low until the peso’s recent sharp depreciation, which spurred the government to request funds from the IMF.
Currency
depreciation
during a crisis thus provides a bigger boost to exports and growth in economies with a more sophisticated production base.
The
depreciation
of the South Korean won caused Samsung products to become more competitive, enabling the company to expand its market share.
The main exports of Argentina and Indonesia – agricultural commodities – were far less responsive to currency
depreciation.
Despite the government’s recent upward revision to a still-depressed personal saving rate, the overall US national saving rate, which drives the current account, remains woefully deficient, averaging just 1.9% in net terms (adjusted for depreciation) over the post-crisis 2009-17 period.
The
depreciation
that followed the crisis helped accelerate recovery by boosting exports.
Indeed, given that
depreciation
is a key tool for engineering a fast economic recovery, why not invite Greece to leave the eurozone?
The only other way to achieve
depreciation
in real terms is through massive deflation of domestic prices, coupled with a severe recession.
In the US, investment spending declined from 23.6% of GDP in 1990 to 19.3% in 2013, and fell even more markedly in net terms (gross investment excluding capital depreciation).
The& CFA& franc’s& fixed exchange rate is pegged to the& euro and& overvalued in order to shield French companies from euro&
depreciation.
In the past, this pattern has always ultimately led to a correction, with America’s growing current-account deficit eventually bringing about a dollar
depreciation.
The resulting underinvestment and
depreciation
of the global economy’s asset base are suppressing productivity growth and thus undermining sustainable recoveries.
Even conditional on prices being renegotiated, the pass-through is quite low, with a 10%
depreciation
of the dollar appearing as a cumulative 3% increase in import prices after two years.
In 1994, when I became State Secretary for Financial Affairs in Sweden’s Ministry of Finance, recovery appeared to be on the horizon, following the abolition of the fixed exchange rate, the ensuing sharp
depreciation
of the Krona, and lower interest rates.
When US President Ronald Reagan assumed office in 1981, he lowered the maximum corporate and personal income tax rates, and allowed companies to write off capital expenditure
depreciation
almost instantly.
Even so, European countries could not ward off the interest-rate increase without risking an even greater
depreciation
of their own currencies.
The Tax Cuts and Jobs Act of 2017 lowered the corporate tax rate from 35% to 21%, allowed for near-instant
depreciation
of equipment investment, and offered a “tax holiday” for US multinationals to repatriate profits that they had long held overseas.
The emerging currency crises in Argentina and Turkey are linked to rapid exchange-rate
depreciation
and loans in foreign currencies that are becoming increasingly difficult to service – just like in 1982, when both countries also encountered serious difficulties.
Southern Europe, which did not borrow in foreign currencies (but has close financial links with Turkey), will likely face difficulties in coping with higher interest rates, which is why the ECB would prefer further euro
depreciation
to interest increases.
Germany’s current-account surplus has stood near 7% of GDP – bigger than China’s – for two years, and is likely to grow even larger, owing to the euro’s recent
depreciation.
For example, the impact of a euro
depreciation
is about three times larger in Italy than it is in Germany, because demand for Germany’s exports of specialized capital goods is not very price elastic.
There is a deep and sad irony to the current
depreciation
of the dollar.
The
depreciation
is the price America must pay for past sins--i.e., a huge current account deficit that foreign investors are no longer willing to finance, at least not at the size of 4% or more of US GDP.
Between falling oil prices, aggressive fiscal and monetary policies, and the dollar's depreciation, it is hard to see what stands in the way of a strong recovery in the US.
Now, given monetary union, the adjustment must be carried out by changing domestic prices relative to tradable goods – that is, by engineering a
depreciation
of the real exchange rate.
The second condition for broad-based currency
depreciation
is financial markets' willingness to assume and maintain risk postures that are not yet validated by the economy's fundamentals.
The authorities probably would not have moved when they did had it not been for growing market pressure for a
depreciation
that could help counteract weakening economic growth.
Nor is the fact that the PBOC’s interventions in the foreign-exchange market over the last year have aimed to dampen the renminbi’s depreciation, not add to it.
Thanks to the Venetian central bank’s reliable prevention of V$ depreciation, confidence in the currency continues to grow, creating a virtuous cycle.
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