Dollar
in sentence
3262 examples of Dollar in a sentence
Economists talk about “bang for the buck” – how much economic stimulus is provided by each
dollar
of spending.
That means that every
dollar
of war spending has in effect been borrowed.
The larger the value of the collateral, typically measured in domestic currency (or in an inflation-indexed unit, such as Chile’s Unidad de Fomento), the larger the size of the
dollar
loan.
If there are large
dollar
debts outstanding, and many firms find themselves in the same position, the additional demand for dollars will cause the exchange rate to depreciate even further.
And that, of course, causes the
dollar
value of the collateral to fall yet again.
The Bank for International Settlements estimates outstanding
dollar
credit to non-bank borrowers outside the United States at $9 trillion.
The Sixty-Year StormToday’s financial crisis, triggered by the collapse of the housing bubble in the United States, also marks the end of an era of credit expansion based on the
dollar
as the international reserve currency.
Moreover, the ability of the financial authorities to stimulate the economy is constrained by the unwillingness of the rest of the world to accumulate additional
dollar
reserves.
If interest rates were lowered beyond a certain point, the
dollar
would come under renewed pressure and long-term bonds would actually go up in yield.
The US Treasury was complaining yet again about the Chinese currency, which had depreciated by 2.4% against the
dollar
in the first half of 2014, after having appreciated by 37% over the previous eight and a half years.
This might stimulate real growth through several channels: by reducing lending rates, by raising the nominal value of public and private assets, and by weakening the euro against the
dollar
and other currencies.
Given the role of the US
dollar
as the dominant global currency, the Fed’s expansionary monetary policy generates significant externalities for the rest of the world – effects that the Fed is certainly not taking into account.
The genius of China’s mini-move (allowing the Yuan to rise 2% against the dollar) is that no one can tell when or what is going to happen next.
Should we ever expect to see wild gyrations in China’s exchange rate of the sort one routinely sees in, say, the Australian
dollar
or the South African rand?
The first round of Yuan revaluation won’t be over until the currency is up against the
dollar
by at least 10%, and probably more.
This twin deficit has taken a severe toll on foreigners' confidence in the fundamental health of the US economy--and hence on the external value of the
dollar.
As the euro remains strong relative to the
dollar
in 2004, America's trade deficit will moderate, but at the cost of making a robust European recovery all the more difficult.
The turning point in this spring’s euro panic came when big holders of reserve currencies signaled that they saw the need for the euro as an alternative to the increasingly problematic
dollar
and the equally vulnerable yen.
For years, the pragmatic answer has been the dollar, and to some extent other national currencies, giving rise to complaints of an “inordinate privilege” for the US.
There are advantages, political and economic, in a broad currency union, as demonstrated by the history of the US
dollar.
With the US economy growing faster than expected and long-term interest rates rising, excessive strengthening of the
dollar
is a third major risk.
Even though the
dollar
is already overvalued, it could move into a self-reinforcing upward spiral, as it did in the early 1980s and late 1990s, owing to
dollar
debts accumulated in emerging markets by governments and companies tempted by near-zero interest rates.
Fourth, the combination of a
dollar
squeeze and protectionism spells big trouble for developing countries, with the possible exception of some relatively closed economies such as Brazil, Russia, and India, whose development strategies are less reliant on free trade and foreign financing.
Bottom DollarAs more time passes with neither the value of the
dollar
declining sharply nor market forces beginning to shrink America’s current-account deficit – which may well reach $1 trillion this year – two diametrically opposed reactions are emerging.
And the only way for the trade deficit to shrink substantially is for net imports to fall, which requires either a relatively sharp decline in the value of the dollar, thereby raising import prices, or a depression in the US.
In one, the value of the
dollar
will be low; in the other, the US will be in a depression.
Therefore, foreign speculators should, any day now, dump their dollar-denominated assets onto the market, and so bring about the
dollar
decline that they so fear.
They continue to hold very large positions in dollar-denominated assets, which they would not do if they thought the US faced a choice between a cheap
dollar
and a deep depression.
The answer appears to be that there is nobody in the financial centers of New York, London, Tokyo, Frankfurt, and Hong Kong who thinks it is their business to bet on a future flight from the
dollar.
Especially in times of crisis – and a sharp fall in US imports would imply a much more severe crisis for Asian and European exporters than it would for the US – the
dollar
is a currency that you run to, not from.
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