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? What can solve America’s problem of trade imbalance
How have the once reasonably priced holidays in Europe become to Americans? What can solve America’s problem of trade imbalance
admin
2022-08-25
96
问题
How have the once reasonably priced holidays in Europe become to Americans?
What can solve America’s problem of trade imbalance according to economists?
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 US 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 US companies less attractive than during the "boom" years of the late 1990’s. Another factor is the US 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 US 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 US 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 4 strong dollars part and they can’t have it both ways. If you want to do something about the US 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 US 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. "
The dollars China accumulates are spent in part on buying US 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 US government to raise interest rates on bonds substantially. Those analysts say Wall Street stocks and other private US 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/v2Pd777K
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
What’sthebasicdifferencebetweenEnglishfootballandAmericanfootball?
PresidentKennedydied______yearsbeforethedaythespeechwasmade.
______airandmarinetransportationhasgreatlyexpandedbutisunderstricterinternationalregulation?______indigenousorg
TwoofthemostcommonfirstimpressionsthatforeignershaveofKoreansisthattheyareincrediblypolite,andthattheyarei
ConfucianismhasitsgreatesteffectamongEuropeancountriesin______.Inrecentthirtyyears,ConfuciusandConfucianismare
ConfucianismhasitsgreatesteffectamongEuropeancountriesin______.Confucianismhasitsmostinfluentialpoweruponforeig
Accordingtothepassage,AmericanscanaccepteverythingEXCEPTthat______.
______diedattheageof89?______madeEuropehispermanenthome?
Whichofthefollowingbestexplainswhatmakesdiamondagoodengineeringmaterial?Whichpropertyofdiamondmakesitaperfe
WhatdidweleamabouttheaesthesiometerusedbyProf.Allen?
随机试题
在小组结束阶段,组员们面临分离,开始在其他地方寻找新资源以适应实际生活,这体现出组员的()特性。
关于2:1房室传导阻滞的分析,不正确的是
患者,男,40岁。小便频急,茎中热痛,刺痒不适,尿色黄浊,尿末或大便时有白浊滴出,会阴、腰骶、睾丸有明显的胀痛不适,舌红苔黄腻,脉弦滑。诊为慢性前列腺炎,其证候是
男,55岁,进行性吞咽困难3个月,体重下降5kg,查体无阳性所见。首选检查方式是
传染病病室,长5m、宽4m、高3m,用食醋进行室内消毒,食醋用量是
在下列城市规划中,可以作为城市开发建设及管理的直接依据的是()。
对于加强教师职业道德建设的对策,以下表述正确的是()。
下面的程序段违反了算法的(52)原则。 void sam() {int n=2: while (!odd (n)) n+=2; printf (n);
设有课程关系模式:R(C#,Cn,T,TA)(其中C#为课程号,Cn为课程名,T为教师名,Ta为教师地址),并且假定不同课程号可以有相同的课程名,每门课程只有一位任课教师,但每位教师可以有多门课程。关系R范式最高达到
HowmanydrugstestswillbeconductedbeforetheSaltLakeOlympicGames?AccordingtoPound,whichofthefollowingstatement
最新回复
(
0
)