首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
The latest hot topic among economic talking heads is the coming currency war. According to conventional wisdom, there’s a risk t
The latest hot topic among economic talking heads is the coming currency war. According to conventional wisdom, there’s a risk t
admin
2015-01-09
65
问题
The latest hot topic among economic talking heads is the coming currency war. According to conventional wisdom, there’s a risk that major countries will—simultaneously—try to revive their sluggish economies by pushing down the value of their currencies. That strategy could backfire, according to this line of thought, stifling international trade, tipping economies back into recession, and possibly causing depression-style hyperinflation to boot. Get ready to sell apples on the nearest street corner and buy your morning coffee with a wheelbarrow full of paper money. It all sounds very unpleasant.
But the dogs of war are unlikely to slip their leash . In a classic currency war, a country prints money, holds interest rates down, or intervenes in foreign exchange markets in order to depress the value of its own currency. That makes the country’s exports cheaper and more attractive for foreign buyers. In theory, this can enable an economy to grow faster than would be possible on the basis of domestic demand alone. Only trouble is, if every country pursues a similar strategy, they all devalue their currencies at the same time and no country gains an advantage over its trading partners.
It may look as though that’s what’s happening now, since many of the largest economies are following policies that could depress the value of their currencies. But they’re doing so for fundamentally different reasons—to address domestic economic problems rather than to boost exports. And while this creates some real risks, they aren’t the ones that the term "currency war" implies.
Currency wars—and trade wars generally—have their origins in a 17th and 18th century economic theory known as mercantilism. The idea was that a country’s wealth comes from selling more than it buys. A colonial empire could achieve this positive balance of trade by acquiring cheap raw materials from its colonies and then ensuring that it exported more finished goods than it imported. This was usually accomplished with tariffs that made imports very expensive.
Such an approach couldn’t work in the modern world. Countries don’t get cheap raw materials from colonies anymore. They have to buy them especially oil on the open market. So while currency devaluation makes exports cheaper for foreign buyers, it also makes essential imports more expensive. Countries with economies that are not fully developed may still depress their currencies to promote exports because they don’t have sufficient domestic demand to sustain their growth.
Japan has pushed its currency down 17% since September, reversing the yen’s appreciation over the previous three years. And the U.S. , as well as many European countries, advocate policies that appear to be aimed at devaluing their currencies, but they’re not doing it chiefly to foment a trade war. The Federal Reserve’s quantitative easing—buying bonds to swell the money supply—is aimed principally at stimulating domestic demand. European advocates of a cheaper euro currency, meanwhile, are hoping to make national debt easier to finance, not trying to pump up exports.
The actual point of current policies is to lower the real cost of money--that is, the effective interest rate that borrowers pay after inflation is taken into account in order to spur consumer spending and business investment. That reduction can be achieved by pushing down interest rates and by allowing inflation. So rather than seeing what’s going on today as the beginning of a global trade war, we should think about it as a side effect of economic stimulus. And in theory, as economies recover, the policies could be reversed before chronic inflation becomes entrenched. But as I said, there are risks to all this— and in practice, inflation can easily get out of hand.
There isn’t a lot individuals can do to protect themselves against such a possibility. People about to retire should favor benefit options with the best cost-of-living increases. Real estate can be a smart buy now that prices are down so much, especially buying a home if it’s financially competitive with renting. Among financial investments, it makes sense to avoid long-term bonds because their payouts are fixed.
So forget all the talk of a currency war. What’s going on has nothing to do with trade and everything to do with debt and growth and inflation. If the global economy is in danger of reliving the past, it will not be a repeat of the 1930s. Rather, it will be a repeat of the 1970s, when the Federal Reserve expanded the money supply to offset the economic slowdown caused by the oil crisis—and ended up encouraging double-digit inflation.
Current easy money policies may well create some inflation, although perhaps not as much as 40 years ago. But in any event, revived growth with some inflation is preferable to stable prices accompanied by depression. The problems of the 1970s can all be overcome - except perhaps the hairstyles.
Which opinion would the author most probably agree to?
选项
A、Inflation will reach double-digit after currency is devalued.
B、Inflation can be controlled if currency policy is reversed.
C、People could buy long-term bonds for the benefits are fixed.
D、People could buy a house whose value is higher than renting.
答案
D
解析
细节题。根据倒数第三段第三句“Real estate can be a smart buy now that prices are down so much,especially buying a home if it’s financially competitive with renting.”可知,这段时期买房子是比较明智的,因为房价大幅下降,买房子比租房子还便宜,故[D]为答案。
转载请注明原文地址:https://kaotiyun.com/show/HgdO777K
0
专业英语八级
相关试题推荐
TheAmericanscreenhaslongbeenasmokyplace,atleastsince1942’sNow,Voyager,inwhichBetteDavisandPaulHenreidshowe
TheAmericanscreenhaslongbeenasmokyplace,atleastsince1942’sNow,Voyager,inwhichBetteDavisandPaulHenreidshowe
A、angryB、excitedC、indifferentD、surprisedB
ChinesearenolongerstrangerstoWesternFestivals.ManyChinesepeoplenowcelebratetheValentine’sDay,ThanksgivingDay,C
Accordingtothenewsitem,whatisMr.Netanyahugoingtodo?
Christmasisthetimetomakethebelovedonesfeelspecial.Ahugandakisswouldprobablybemorethanenoughbutgiftsare
Christmasisthetimetomakethebelovedonesfeelspecial.Ahugandakisswouldprobablybemorethanenoughbutgiftsare
Poetrydoesn’tmattertomostpeople.Onehastowonderifpoetryhasanyplaceinthe21stcentury,whenmusicvideosandsat
1 Idon’tknowifgaymarriagewillhaveallthebadeffectspredictedbyconservatives,butit’salreadyhavingonetheydidn’
以上都表明只要有了点基础的英语语法知识和初步的英语词汇,在阅读时就应永远留心注意一切异常的和特殊的语言现象,并在看到它们时用心思考,直至彻底弄懂。但是,这样推崇思维的作用决不应理解为对记忆的作用的任何贬抑。尽管这里强调了前者,后者还是根本性的,因为
随机试题
妊娠合并的心脏病中,发生率占首位的是()
城市居民委员会是()。
患者,男,28岁。上腹痛,发热,恶心4小时后出现右下腹痛,查体:右下腹固定性压痛,无腹肌紧张及反跳痛。应考虑的阑尾炎病理类型是
物业管理企业资质等级分为()资质等级。
建设项目法人是指由投资建设项目的()依法组建的、具有法人条件的组织。
教育者
“去粗取精,去伪存真”是数学思维()的体现.
如图,AB是⊙O的弦,AB长为8,P是⊙O上一个动点(不与A、B重合),过点O作OC⊥AP于点C,OD⊥PB于点D,则CD的长为__________.
根据所给材料,回答下列问题。浮船坞是一种修造舰船的大型装备,外观就像是把一个干船坞从岸边“刨”了出来。主结构是一个巨大的凹字形船舱,两侧有水密结构的墙,前后端是可以开合的门,实际上是一种构造特殊的槽形平底船,且船底被设计得尤为坚固,以承受大型船只
课程目标
最新回复
(
0
)