Thus, for the dollar to depreciate further, it will have to depreciate against the currencies of China and other emerging markets.

Today, every country seems to want to depreciate its currency.

In order for some currencies to depreciate, others must appreciate.

Their currency may depreciate, but the risk of default is absent.

And all countries can t depreciate their exchange rates at the same time.

Italy will have to depreciate by 10 15 , and Spain by roughly 20 .

First, its currency would naturally depreciate, making exports more competitive and imports more expensive.

A country with a flexible currency can achieve that by allowing the exchange rate to depreciate.

First, FX is all about relative prices if the dollar appreciates some other currency must depreciate.

After all, a currency can appreciate while an economy is sluggish, or depreciate despite robust growth.

Just as in the case of the United Kingdom since 2008, the Greek exchange rate would depreciate sharply.

After all, should the dollar depreciate, China does not want to have too many eggs in the US basket.

If exchange rates cannot depreciate, wages and prices need to fall when a country has an unsustainable current account deficit.

This alone means that under normal circumstances the purchasing power of China s foreign exchange reserves will automatically depreciate by 4 each year.

Governments lack a national currency to depreciate, and lack the power to relax credit, having delegated monetary policy to the European Central Bank.

The value of some implementation issues for the purpose of the overall Doha negotiations continues to depreciate as time elapses and substantive negotiations progress.

PRINCETON The most noteworthy commemoration of the second anniversary of Lehman Brothers collapse on September 15, 2008, was Japan s unilateral currency intervention to depreciate the yen.

Because all of the accumulated debt is denominated in euros, it makes all the difference which country leaves the euro. If Germany left, the euro would depreciate.

Reintroducing the national currency in order to depreciate it, but leaving the euro value of other financial instruments untouched, would destroy balance sheets and wreak financial havoc.

If these countries lack the political consensus they need to pull this off, they should in their own interest consider leaving the eurozone temporarily to depreciate their currencies.

The OECD purchasing power statistics paint a similar picture, with Greece needing to depreciate by 39 and Portugal by 32 just to reach the price level prevailing in Turkey.

Since all of the accumulated debt is denominated in euros, it makes all the difference who remains in charge of the monetary union.If Germany left, the euro would depreciate.

Unlike the US dollar, there is no obvious way to put pressure on the European Central Bank to depreciate the currency in order to obtain a competitive advantage over other economies.

In 1931, after Britain and some two dozen other countries suspended gold convertibility and allowed their currencies to depreciate, countries that stuck to the gold standard found themselves in a deflationary vice.

According to a study by Goldman Sachs, France would have to depreciate by around 20 relative to the eurozone average, and by about 35 vis à vis Germany, to restore external debt sustainability.

The relative price of the goods produced in the advanced countries (their real exchange rate) needs to depreciate vis à vis the emerging countries in order to compensate for the expected shortfall in internal demand.

One need not be an economist to figure out that, while all currencies can (and do) depreciate against something else (like gold, land, and other real assets), by definition they cannot all weaken against each other.

Of course, not all currencies can depreciate against one another at the same time. But the current wave of efforts, despite being far from optimal, can persist for a while, so long as at least two conditions are met.

And yet negative bonds yields are also occurring in countries and regions where the currency is depreciating and likely to depreciate further, including Germany, other parts of the eurozone core, and Japan. So, why are investors holding such assets?

Next, suppose that the price of the natural resource that is the country s largest export suddenly dips sharply (as has happened recently). The exchange rate (both nominal and real) will depreciate accordingly, thereby setting in motion the standard, textbook adjustment process.

According to a recent study by Goldman Sachs, the country s price level must drop by an estimated 20 vis à vis the euro average that is, depreciate in real terms if the economy is to regain competitiveness within the eurozone.

Chinese policymakers should bear in mind that the value of the yuan is only one among many factors that affects the competitiveness of China s economy. After all, a currency can appreciate while an economy is sluggish, or depreciate despite robust growth.

This partly reflects borrowing cost differentials. If the local interest rate is 17 per year and the dollar interest rate is 2 , it still makes sense to borrow in dollars as long as the domestic currency is expected to depreciate 15 or less.

Given the high rate of growth in China s money supply, there could be considerable pressures for the yuan to actually depreciate, because a rate of monetary growth that exceeds the growth rate of economic activity tends to cause a currency s exchange rate to fall.

The Plaza Accord or Plaza Agreement was an agreement between the governments of France, West Germany, Japan, the United States, and the United Kingdom, to depreciate the U.S. dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets.

Asymmetry of this magnitude requires a significant adjustment of relative prices. The relative price of the goods produced in the advanced countries (their real exchange rate) needs to depreciate vis à vis the emerging countries in order to compensate for the expected shortfall in internal demand.