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
How have the once reasonably priced holidays in Europe become to Americans?
How have the once reasonably priced holidays in Europe become to Americans?
admin
2009-06-24
130
问题
How have the once reasonably priced holidays in Europe become to Americans?
Americans crossing borders groan in dismay as they exchange their dollars for less and less in other currencies. Holidays in Europe, for instance, that once seemed reasonably priced have become the opposite. At home, the cost of imported goods has risen. And currency analysts say the dollar’s decline may continue for the foreseeable future because of a number of factors including the policies of the U.S. government.
The "shrinking" dollar isn’t just an issue for people in the United States. Roger Leeds with the Johns Hopkins University School of Advanced International Studies notes some global repercussions. "The dollar is unquestionably the dominant currency in the world’s economy as measured by various indicators such as trade oil is invoiced (priced) in dollars and most other commodities are generally invoiced in dollars. It’s also the major international reserve currency, which means that most central banks hold their foreign exchange reserves in dollars".
What determines the value of the dollar and every other currency? Simply put, it’s the price they are bought and sold in the global currency market place, reflecting supply and demand. Brian Dolan at GAIN Capital in New York says the value of the dollar or any currency also reflects the underlying financial circumstances of the country behind it.
"The easiest way is to make an analogy—currency as the "stock" of a country. So just as a stock’s performance (price) is going to depend on the performance of that company so, too, will a currency appreciate or depreciate depending on the economic prospects, the political prospects, the interest rate prospects of a given economy".
Seen in that light, there are a number of factors that have combined to drive down the dollar. Beginning in 2000, the United States underwent an economic slowdown and a decline in the stock market, which analysts say made foreign investing in U.S. companies less attractive than during the "boom" years of the late 1990’s. Another factor is the U.S. government, which in fiscal 2004 incurred a record budget deficit of nearly $413 billion as it waged war in Iraq, a global war against terror and other costly expenditures. There is also the $592 billion trade deficit—more than 5% of the U.S. economy’s total value—run up last fiscal year as Americans bought far more outside the country than they sold abroad.
Economists say the trade or "current account" imbalance can be addressed by a "cheaper" dollar that makes U.S. exports more competitive on the world market. But President Bush and Treasury Secretary John Snow continue to say they support a "strong" dollar. Josh Bivens of the Economic Policy Institute in Washington says that won’t solve the trade problem.
He says, "Everyone realizes that we have to worry about the trade deficits now. They’ve just gone as far as they can go. They’re not sustainable. But yet they don’t want to give up the ’strong dollar’ part and they can’t have it both ways. If you want to do something about the U.S. trade deficit, you have to accept a lower value for the dollar".
Economist Bivens also says the Bush administration’s talk of a "strong" dollar is mainly intended to maintain foreigners’ confidence in the U.S. economy so they will continue to invest.
Much of the concern over the trade imbalance has centered on China, which ties the value of its currency, the yuan, to the dollar. John Williamson at the Institute for International Economics in Washington says this has enabled Beijing to remain a dominant exporter. "When the dollar decreases in value, the Chinese currency rides it down. And so, that means that Chinese exports become more competitive in the rest of the world".
China has resisted pleas to break its currency’s link to the dollar in order to continue its economic expansion. But the dollars it accumulates are spent in part on buying U.S. government securities that finance the budget deficit. What worries some analysts is that foreign investors such as China may become reluctant to support Washington’s debt. If that happens, a crisis could develop that would force the U.S. government to raise interest rates on bonds substantially. Those analysts say Wall Street stocks and other private U.S. investments may be driven down as a result, possibly triggering a recession.
Whatever the dollar’s ultimate price, economists and currency traders say in unison that any shifts in the value of the dollar and other currencies must be orderly and gradual to prevent market "shocks" that can ripple worldwide.
选项
答案
A "cheaper" dollar/A cheaper dollar.
解析
转载请注明原文地址:https://kaotiyun.com/show/l1Hd777K
本试题收录于:
公共英语五级笔试题库公共英语(PETS)分类
0
公共英语五级笔试
公共英语(PETS)
相关试题推荐
TheauthorofthepassagecouldnotgotosleeppartlybecauseTheauthorbrushedhisteethoverandover
YouthEmancipationinSpainTheSpanishGovernmentissoworriedaboutthenumberofyoungadultsstilllivi
AmericanpubliceducationhaschangednumbersofAmericanparentsandteachersareinrecentyears.Onechangeisthatincreasin
TheImportanceofAgricultureinChinaThedevelopmentofagricultureandthebalancebetweenfoodandpopulationareChina’
AdultEducation1Voluntarylearninginorganizedcoursesbymaturemenandwomeniscalledadulteducation.Sucheducation
StormsSinkShipsRescuershavefoundthebodiesofover130peoplekilledintwoferrydisastersinBangladesh.Theacciden
AttentiontotheDetails1.Attentiontodetailissomethingeveryonecanandshoulddo—especiallyinatightjobmarket.B
HowaTerribleBattleHelpedtoChangeEuropeNinetyyearsagoonasunnymorninginNorthernFrance,somethinghappenedthat
HowaTerribleBattleHelpedtoChangeEuropeNinetyyearsagoonasunnymorninginNorthernFrance,somethinghappenedthat
DeclingInternetinDevelopingForeignLanguageSkillsAustralians’foreignlanguageskillsaredeclining,Voi
随机试题
人脑把具有相同的、一般特征的事物归到一定的类别中去,是思维过程的哪个环节【】
A.深而慢的呼吸B.浅而快的呼吸C.节律不齐的呼吸D.吸气性呼吸困难E.呼气性呼吸困难呼吸道有阻塞时表现为
B企业为金属加工企业,主要从事铝合金轮毂加工制造。B企业的铝合金轮毂打磨车间为二层建筑,建筑面积2000m2,南北两端各设置载重2.5t的货梯和敞开式楼梯,一层有通向室外的钢制推拉门2个,该车间共设有32条生产线,一、二层各16条,每条生产线设有12个
按照爆炸反应相的不同,爆炸可分为气相爆炸、液相爆炸和固相爆炸。下列爆炸情形中,属于液相爆炸的是()。
儒家思想在宋代被精缩为“四书”和“五经”,并成为科举考试的基本教材。()
培训部会计师魏女士正在准备有关高新技术企业科技政策的培训课件,相关资料存放在Word文档“PPT素材.docx”中。按下列要求帮助魏女士完成PPT课件的整合制作:创建一个名为“PPT.pptx”的新演示文稿,该演示文稿需要包含Word文档“PPT素材.
•Lookattheholesbelow.•Youwillhearamanmakinganappointment.ReservationCardTo:D
Peoplevolunteerfordifferentreasons,butprobablymostofusvolunteerinordertotrytoimprovelifeforother.However,ge
ThemostsparselypopulatedcountyinWalesiswhereyouwillfindBritain’shappiestplace,sayresearchers,asPowystopsthe
A、Lookatthemsadly.B、Touchthemgently.C、Keepthemcompany.D、Playgameswiththem.C由短文中提到的shewouldgotowhoeverwassick
最新回复
(
0
)