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Depreciation in sentence

495 examples of Depreciation in a sentence

In demanding that China stop the renminbi’s market-driven depreciation, however, Trump is effectively calling on the country to do exactly what the US has always condemned: intervene directly in currency markets.
When the bubble bursts, the afflicted country can restore competitiveness only through a painful process of real depreciation.
In response, China’s central bank is lowering interest rates to spur domestic investment, and the resulting depreciation of the renminbi’s exchange rate has helped to keep exports afloat.
The last major depreciation of the Chinese renminbi began in the second half of 2015, triggered by a surge in capital outflows.
Yet, in contrast to the last round of renminbi depreciation, investors aren’t panicking.
Moreover, according to the State Administration of Foreign Exchange, China’s current-account and non-reserve financial-account surpluses stood at $5.8 billion and $18.2 billion, respectively, in the second quarter of 2018With “twin surpluses” in the second quarter and July, and with no detectable large-scale capital outflows, the renminbi’s sharp depreciation becomes more difficult to explain.
But the refusal by China’s leaders to pursue export-boosting currency depreciation, even in the face of decelerating growth, suggests that they are willing to make the needed sacrifices to secure the renminbi’s international role and, with it, long-term economic growth and prosperity.
The dollar depreciation engineered by the US Federal Reserve seems an appealing proposition from the American standpoint, but the economies of Latin America cannot and should not bear the burden of dollar realignment.
One possibility is that the inevitable reduction of US current-account deficits (whenever that comes) may result from sustained dollar depreciation (as in the 1970s), implying a capital loss for China and other major holders of US Treasuries.
But this time inflation is not accompanied by exchange-rate depreciation.
Indeed, economic theory suggests that the interest-rate differential should be offset on average by depreciation of the currency with the higher interest rate, the differential thus reflecting the compensation required by investors to hold money in relatively risky currencies.
Just as a firm needs to measure the depreciation of its capital, so, too, our national accounts need to reflect the depletion of natural resources and the degradation of our environment.
When a potential or actual loss of confidence in the currency threatens to bring about large capital outflows, intervention usually takes the form of sales of foreign-exchange reserves to mitigate the magnitude or speed of depreciation.
That leaves China, now the world’s second-largest economy, which was not an integral part of the 1985 agreement, to bear the burden of dollar depreciation.
Other models have large quarterly shocks to the depreciation rate in the capital stock (in order to generate high asset price volatilities)...”That is, downturns are either the result of a great forgetting of technological and organizational knowledge, a great vacation as workers suddenly develop a taste for extra leisure, or a great rusting as the speed at which oxygen corrodes accelerates, reducing the value of large things made out of metal.
The depreciation of the US dollar – which fell 10%, in trade-weighted terms, in 2017 – has helped to drive up oil prices, but it is likely to be halted and then partly reversed.
Currency depreciation works by lowering domestic costs in foreign-currency terms.
US authorities have not intervened in the foreign-exchange market or talked down the dollar, and currency depreciation was not the Fed’s goal when deciding to implement its quantitative-easing policy.
Japan comes a little closer to qualifying as a currency warrior, because members of Shinzo Abe’s government were initially foolish enough to mention yen depreciation as an explicit goal.
Indeed, the failure of many emerging-market governments to tighten macroeconomic policy sufficiently has led to another round of currency depreciation, which risks feeding into higher inflation and jeopardizing these countries ability to finance twin fiscal and external deficits.
This will require changes in corporate governance generally, and in non-financial corporations’ incentive structures, including preferential tax treatment for retained profits and equity finance, and special depreciation allowances for reinvested profits.
The concern is that countries that are dependent on foreign financing could be hit by sudden outflows of international capital, or that currency depreciation following the Fed hike could raise debt-servicing costs for countries and businesses.
Appreciation can harm competitiveness, while depreciation increases the cost of servicing foreign-currency debt, erodes market confidence, and leads to higher inflation.
The value of China’s assets as future claims on real resources has already been diluted by dollar depreciation, and calls in the US for inflating away America’s debt burden portend a further decline.
The recent panic over the renminbi’s depreciation highlights another compelling reason for collective action.
It is important to think about saving in “net” terms, which excludes the depreciation of obsolete or worn-out capacity in order to assess how much the economy is putting aside to fund the expansion of productive capacity.
A depreciation of silver relative to gold in this system would bring down real wages and improve competitiveness.
Indeed, the saving numbers cited above are “net” of depreciation – meaning that they measure the saving available to fund new capacity rather than the replacement of worn-out facilities.
To avert a disorderly fall, short-term macroeconomic management requires officially engineered depreciation through administrative methods and restraints on external borrowing.
But, in the absence of complementary action, depreciation – whether engineered or market-driven – will make matters worse.
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