Depreciation
in sentence
495 examples of Depreciation in a sentence
America’s net national saving rate – the sum total of household, business, and government saving (adjusted for the
depreciation
of aging capacity) – currently stands at 2.5% of national income.
For China, which to some extent still depends on external markets to drive economic growth, this environment is particularly challenging – especially as currency
depreciation
in Europe and Japan erode export demand further.
For example, Indonesia’s poverty rate soared from roughly 11% to 37% during the crisis, mainly owing to the massive
depreciation
of the rupiah.
In economic development, as in life, there’s no free lunch: Without high rates of investment in know-how, skills, machinery, and sustainable infrastructure, productivity tends to decline (mainly through depreciation), dragging down living standards.
The Europeans gladly went along with this charade because they now fear dollar
depreciation
more than global imbalance.
In any case, protecting exports by resisting euro appreciation – or, more precisely, dollar
depreciation
– is a poor way to promote economic growth.
Dollar
depreciation
improves Europe’s terms of trade and real income.
Simply put, there must be dollar
depreciation
to keep global imbalances in check.
And on April 10, the exchange rate’s rapid
depreciation
prompted the government to halt domestic foreign-exchange transactions and outlaw foreign-currency holdings of more than €10,000 ($12,000).
But it does recommend a legally binding commitment to keep investment levels at least as high as the rate of
depreciation
of state assets, and to use unexpected budget surpluses, first and foremost, for increased public investment.
They thus assumed that it was just the beginning of a protracted policy-induced
depreciation.
The realignment of regulated prices with market prices, together with that of foreign and domestic prices (through exchange-rate depreciation), produced an inflation shock, with the consumer-price index reaching a 13-year high last year.
For one thing, the RBI has prevented the rupee from falling further, thereby averting the risk of a vicious circle of capital outflows and currency
depreciation.
What Italy managed in the past by devaluing the lira must now be emulated through so-called real
depreciation.
There is no other solution for the country than to correct this imbalance by means of real
depreciation.
The economist Mario Monti, who followed Berlusconi as Prime Minister, attempted a real depreciation, introducing greater flexibility into the labor market in order to force the unions into wage concessions.
In fact, there has been no change in relative prices or
depreciation
of the US dollar of a magnitude that would augur a permanent shift in trade and spending patterns.
Since then, many calls for coordination have lamented the outbreak of “currency wars,” otherwise known as competitive
depreciation
– an old phenomenon that recalls the tit-for-tat devaluations of the 1930s.
The US has led some international attempts to address competitive depreciation, including an agreement among G-7 ministers in February 2013 to refrain from foreign-exchange intervention and a November 2015 side agreement to the Trans-Pacific Partnership to address currency manipulation.
Some argue that the problem is competitive
depreciation
or too-low interest rates; others maintain that the real problem is overvalued currencies or too-high interest rates.
Some believe that the way to overcome competitive
depreciation
for good is to fix exchange rates, as the architects of the Bretton Woods arrangements did in 1944; others, including some US politicians today, advocate the opposite approach: an agreement against seeking to influence exchange rates at all.
As the deficit widens further, dollar
depreciation
will likely resume, despite laggardly performances by the world's other major economies.
Further dollar
depreciation
as well as slower US growth will undermine EU exports, the one relatively successful component of demand in Europe.
In developed countries with floating exchange rates, a drop in foreign lending can be expansionary if currency
depreciation
stimulates exports.
During the May-June quasi-panic that followed Bernanke’s statement, it was countries with large external deficits (making them the most obvious candidates for real depreciation) – for example, India, South Africa, and Turkey – that suffered the sharpest selloffs.
After dropping by more than half between mid-June and mid-January, oil prices in euros have since bounced back by a third, partly owing to the euro’s sharp depreciation, which is making imports generally more expensive.
According to the ECB’s model, the euro’s 10%
depreciation
over the past year (in real, trade-weighted terms) may lift growth this year by a mere 0.2%.
The ECB’s rescue operations have hindered the internal
depreciation
– lower prices for assets, labor, and goods – that the troubled economies need to attract fresh private capital and regain competitiveness, while the euro’s appreciation is now compounding the challenge.
Given that most emerging-market countries’ trade is conducted in dollars, currency
depreciation
should push up import prices almost one for one.
Many local currencies in the EBRD region (such as the Hungarian forint, the Ukrainian hryvnia, and the Russian ruble) have suffered severe
depreciation
since in the last quarter of 2008.
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