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
113
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
TheAmericanFamilyIntheAmericanfamilythehusbandandwifeusuallyshareimportantdecisionmaking.Whenthechildrenare(5
TheAmericanFamilyIntheAmericanfamilythehusbandandwifeusuallyshareimportantdecisionmaking.Whenthechildrenare(5
NewIdeasIceland’sPresidentOlafurGrimssonistryingtodrivecarbondioxide(二氧化碳)undergroundto
ReducePackagingPressureincreasedrecentlyonBritishsupermarketsandretailerstoreducepa
AmericanpubliceducationhaschangednumbersofAmericanparentsandteachersareinrecentyears.Onechangeisthatincreasin
DiningCustomEverylandhasitsowndiningcustom,andtheUnitedStatesisnoexception.Americansfeelthatthefirstrul
TheWhiteHouseWegetupearlythismorningand【51】alongwalkafterbreakfast.Wewalkedthroughthebusinesssectionof
HowaTerribleBattleHelpedtoChangeEuropeNinetyyearsagoonasunnymorninginNorthernFrance,somethinghappenedthat
InSports,RedistheWinningColorWhenopponentsofagameareequallymatched,theteamdressedinredismorelikelytow
Wheredidclassicalmusicoriginate?
随机试题
教育区别于其他社会现象的根本特征,即教育的质的规定性是_______。
Scholarsandresearchershavetriedtodiscoverwhatpersonalitycharacteristicsgoalongwithsuccessininterculturalexperien
属于《中华人民共和国实施强制性产品主证的产品目录》范围的商品,必须经过指定的认证机构认证合格、取得认证证书,并加施认证标志后,方可进口。( )
下列不是我国ATA单据册的担保协会和出证协会的是______。
“君子耻其言而过其行”翻译为:“君子以他所说的超过他所做的为可耻”,这在当今仍具有强烈的教育意义。这句话出自()。
在某次学术会议上,有人发现:凡是认识李博士的人,张教授都认识;只要是有些人不认识的人,赵研究员全都认识;新参加会议的研究生小王不认识与会的任何人。根据以上陈述,可以得出()。
设函数y=y(x)在(一∞,+∞)内具有二阶导数,且y’≠0,x=x(y)是y=y(x)的反函数.试将x=x(y)所满足的微分方程变换为y=y(x)所满足的微分方程.
在长度为n的顺序表中查找一个元素,假设要查找的元素一定在表中,并且元素出现在表中每个位置上的可能性是相同的,则在平均情况下需要比较的次数为()
Whoistheboytalkingwith?
Whoarethesparkers?
最新回复
(
0
)