Dollar
in sentence
3262 examples of Dollar in a sentence
Western sanctions, which seemed to constitute only a pinprick a few months ago, appear to have inflicted serious damage, with the ruble having lost nearly half its value against the US
dollar
last year.
First, investors, recognizing that the
dollar
is overvalued and that they are likely to suffer large losses when it returns to its fundamental value, could start selling their Treasury bonds, corporate bonds, and mortgage-backed securities.
The second factor that could push US interest rates sharply upward is not fear of a decline in the future value of the dollar, but the fact of a past decline in its value.
A 40% fall in the value of the
dollar
– of which half passes through to increased
dollar
prices of imports – thus implies a 3.2% rise in the overall price level.
If there is a sharp spike in interest rates – caused either by capital flight in anticipation of a
dollar
decline or by tight monetary policy in reaction to a
dollar
decline comes to pass – we will see how good the Federal Reserve really is.
But if interest rates don’t rise far enough, the value of the
dollar
will spiral downward and US inflation will spiral upward like in the 1970’s, setting the stage for the type of extremely painful measures imposed by then Federal Reserve Chairman Paul Volcker.
What Can Replace the
Dollar?
BERKELEY – For more than a half-century, the US
dollar
has been not only America’s currency, but the world’s as well.
But, already before the recent debt-ceiling imbroglio, the
dollar
had begun to lose its luster.
Just as the US now has to share the world stage with other economies, the
dollar
will have to make room for other international currencies.
In my recent book Exorbitant Privilege: The Rise and Fall of the Dollar, I described a future in which the
dollar
and the euro would be the dominant global currencies.
There was no realistic alternative, I concluded, to a future in which the leading national currencies, the
dollar
and the euro, still dominated international transactions.
Once upon a time (less than a year ago), it was possible to imagine international-reserve portfolios dominated by the
dollar
and euro; today, anxious central bankers are desperate for alternatives to both sick currencies.
Second-tier currencies, like the Swiss franc, the Canadian dollar, and the Australian dollar, are only a slightly larger midget when combined.
This much has not changed in the last year: the SDR still is not an attractive option for central banks disenchanted with the
dollar
and the euro.
The reason is obvious on a moment’s reflection: the combined share of the
dollar
and euro approaches 80% of the basket of currencies that comprise the SDR.
The SDR would offer little protection if the
dollar
and euro lost value over time.
But if governments and central banks are serious about identifying alternatives to the
dollar
and the euro, now is the time to start – and GDP-linked bonds are the place to look.
Its exchange-rate regime, which pegs the Renminbi to the US dollar, was blamed for the mounting US trade deficit.
The Democrats favor loose monetary policy, low interest rates, and a depreciated
dollar.
Yes, the
dollar
would remain the world’s main reserve currency even after a gratuitous bout of default; there is simply no good alternative yet – certainly not today’s euro.
The same, of course, will ultimately happen to the dollar, especially as Asian capital markets grow and deepen.
Even if the
dollar
long remains king, it will not always be such a powerful monarch.
For every
dollar
a student pays or gives up to attend school, his or her future income rises by about $4.80.
The direct impact is that a stronger
dollar
reduces the cost of imported goods.
But, because they flooded global markets with liquidity, large portfolio flows have moved into emerging-market countries, whose currencies often are not as liquid as the
dollar.
European exporters generally invoice their exports in dollars and adjust their
dollar
prices very slowly, a point made clear in an important paper that Gita Gopinath of Harvard presented at the Federal Reserve’s Jackson Hole conference in August 2015.
Long-term interest rates fell, equity prices rose, and the euro declined relative to the
dollar.
But after the humiliation of the financial crises of the late 1990s, Putin had seen to it that Russia was armed with substantial
dollar
reserves – the third largest after China and Japan.
Instead, the changes in taxes on imports and exports would lead to a rise in the value of the
dollar
that offsets the direct impact of the border tax changes.
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