The CFA franc s fixed exchange rate is pegged to the euro and overvalued in order to shield French companies from euro depreciation.

Other models have large quarterly shocks to the depreciation rate in the capital stock (in order to generate high asset price volatilities)...

For example, Indonesia s poverty rate soared from roughly 11 to 37 during the crisis, mainly owing to the massive depreciation of the rupiah.

China s Daring Depreciation

Global capital markets would recognize that a country with high unemployment might choose to pursue an inflationary policy or a policy or exchange rate depreciation.

At some point, the yields on bonds and mortgages will be high enough that investors appetite for yield will balance their fear of exchange rate depreciation.

The US, the IMF, and others had encouraged Asian countries to increase exchange rate flexibility. The depreciation that followed the crisis helped accelerate recovery by boosting exports.

Its purpose is not to encourage the depreciation of the yen, despite complaints about the yen s depreciation.

The eurozone s peripheral countries, including Greece, Portugal, Ireland, and Spain, found themselves pinned to the mast of the common currency, unable to gain competitiveness through exchange rate depreciation.

Reintroducing the drachma risks exchange rate depreciation in excess of what is necessary to restore competitiveness, which would be inflationary and impose greater losses on drachmatized external debts.

Finally, both inflation and restructuring put some of the burden on non resident bondholders (through exchange rate depreciation and the direct reduction of the value of assets, respectively).

Indeed, economic theory suggests that the interest rate differential should be offset on average by depreciation of the currency with the higher interest rate, the differential thus reflecting the compensation required by investors to hold money in relatively risky currencies.

Governments without fiscal resources are left with little option but to respond in ways that will only exacerbate problems for other countries trade protection and competitive exchange rate depreciation.

Although cutting the Federal Funds interest rate from 5.25 in the summer of 2007 to 3 now contributes to dollar depreciation, this has been aimed at stimulating a weakening economy.

This means that the fiscal authorities have a big responsibility to target a structural fiscal surplus that is high enough to generate the space needed for real exchange rate depreciation.

Indeed, the impact of real exchange rate depreciation on growth is likely to be short lived unless increased corporate profits in the export sector lead to higher household consumption and investment.

Restoring sustained growth requires real currency depreciation.

QE is a legitimate monetary policy instrument, but the Fed and the Bank of England would probably not embrace it with such enthusiasm were it not for the anticipated exchange rate depreciation.

After the restructurings, almost all debtor countries experienced an economic recovery and regained external viability (also due to real exchange rate depreciation), although in a context of more favourable global economic conditions.

And that means further depreciation of the dollar.

The extent of creditor countries losses would depend on the extent of the depreciation, giving them an interest in keeping the depreciation within bounds.

During the East Asian crisis of 1997 1998, poverty rose sharply. For example, Indonesia s poverty rate soared from roughly 11 to 37 during the crisis, mainly owing to the massive depreciation of the rupiah.

But, in fact, the depreciation of the dollar began well before the September 1985 meeting, and the meeting was limited in the sense that there was no discussion of monetary or interest rate policy.

In addition to the direct destruction, it is assumed that the depreciation rate increased from the historical average of 5 per cent to 8 per cent to reflect the overuse and lack of maintenance.

Dollar depreciation improves Europe s terms of trade and real income.

So we expect a substantial depreciation premium on US interest rates.

They are all part of an enormous multilateral trade deficit that stems from America s unprecedented shortfall of saving a depreciation adjusted net national saving rate (combining businesses, households, and the government sector) that has been negative since 2008.

The depreciation that followed the crisis helped accelerate recovery by boosting exports.

In 1994, when I became State Secretary for Financial Affairs in Sweden s Ministry of Finance, recovery appeared to be on the horizon, following the abolition of the fixed exchange rate, the ensuing sharp depreciation of the Krona, and lower interest rates.

But all of the options that might restore competitiveness require real currency depreciation.

Simply put, there must be dollar depreciation to keep global imbalances in check.

In principle, such a depreciation against all of the world s currencies is manageable.

A 20 dollar depreciation would therefore reduce Americans purchasing power by only 3 .

The depreciation expenses have gone up to 2.02 million against the budgeted amount of 0.9 million. The circumstances under which the depreciation expenses increased by 100 percent could not be satisfactorily explained to the Panel.

Depreciation is used to record the declining value of buildings and equipment over time.

With China retaining its under valued currency policy, dollar depreciation can aggravate global deflationary forces.

The attempt to achieve them is bound to lead to competitive currency depreciation and protectionism.

A return to a national currency and a sharp depreciation would quickly restore competitiveness and growth.

First, it contributes to yen depreciation and dollar appreciation as carry traders switch out of yen.

The yen s depreciation versus the dollar has contributed to continuing large US trade deficits with Japan.

Depreciation is computed using the straight line method over the estimated useful life of the asset.

By contrast, in the case of debt owed to foreigners, higher interest rates lead to a welfare loss for the country as a whole, because the government must transfer resources abroad, which usually requires a combination of exchange rate depreciation and a reduction in domestic expenditure.

But, in the absence of complementary action, depreciation whether engineered or market driven will make matters worse.

In the past, some countries have enjoyed tearless consolidation, because the launch of a retrenchment program was accompanied by a drop in long term interest rates, a decline in private savings, or a surge in exports thanks to exchange rate depreciation (or all of these at the same time).

Today, it costs 220 naira to buy one British pound, which implies 15 annual average depreciation since 1973.