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
74
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
maintain foreigners’ confidence
解析
转载请注明原文地址:https://kaotiyun.com/show/q1Hd777K
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
NewIdeasIceland’sPresidentOlafurGrimssonistryingtodrivecarbondioxide(二氧化碳)undergroundto
ReducePackagingPressureincreasedrecentlyonBritishsupermarketsandretailerstoreducepa
TheOperationofInternationalAirlinesInternationalairlineshaverediscovered(重新发现)thebusinesstraveler,themanorwo
ImproveComputer-researchSkillsLikemanycollegestudents,JoseJuarezcarriesaroundapocket-sizedcomputerthatletshi
A.sportsnewsB.ourdecisionsandopinionsC.masscommunicationD.ourmessagesE.sourceofinformation
TheMostWonderfulIslandsThePalmIslandsarethelargestartificialislandsintheworldandareunderconstructioninDu
AmericanDreamsThereisacommonresponsetoAmericaamongforeignwriters:theUSisalandofextremeswherethebestof
TheindustrialrevolutionmodifiedthewholestructureofEnglishsociety.
Experimentshaveconfirmedtheassumptionofmanyexecutives.Peoplearemorelikelytocooperatewiththosewholikethem.
随机试题
A.具有医学院校毕业或经核医学专业培训6个月以上,并获中级以上专业技术职务的人员B.具有取得执业医师资格,经核医学专业培训1年以上,并获中级以上专业技术职务的人员C.具有中专以上文化程度或经核医学(放免)专业培训,从事本专业1年以上的技术人员D.除具
急性肾功能衰竭循环功能正常
A.氯苯那敏和泼尼松B.链霉素或异烟肼C.抗生素或磺胺类药物D.酮康唑和口泰E.阿昔洛韦及干扰素或转移因子治疗抗生素性口炎可选用的药物是
专供集中供暖散热器用的钢铁制螺栓
2009年1月19日中国证券业协会公布的《证券从业人员执业行为准则》规范的对象包括证券投资咨询机构、财务顾问机构、证券资信评级机构的从业人员。()
资产配置是投资过程中最重要的环节之一。()
简述历史剧的基本特征。
某货车运输公司有一个中央仓库和n个运输目的地,每天要从中央仓库将货物运输到所有运输目的地,到达每个运输目的地一次且仅一次,最后回到中央仓库。在两个地点i和i之间运输货物存在费用Cij,为求解旅行费用总和最小的运输路径,设计如下算法:首先选择离中央仓库最近的
一个功能完备的网络系统应该提供一些基本的安全服务功能,这些功能包括保密性、______、数据完整性、防抵赖和访问控制。
________fromspace,ourearth,withwatercovering70%ofitssurface,appearsasa"blueplanet".
最新回复
(
0
)