Brazil, Chile, and Colombia, among others, are now confronting these powerful forces of currency appreciation.

When this pattern is combined with the depreciation of the new Israeli shekel (NIS) in 2003 and then its appreciation in 2004, it is clear that while the Palestinian trade balance does not benefit from the depreciation of the Israeli currency, it suffers the full negative impact of currency appreciation.

The financial sector was able to profit from the rising dollar, and a depreciation would have run counter to Ronald Reagan's administration's plans for bringing down inflation.

For example, an inflow of oil money often leads to currency appreciation a phenomenon called the Dutch Disease .

Devaluation is not an option because of the common currency.

At the same time, the effect of currency appreciation on the trade balance should not be exaggerated.

But, as Hollande s recent declarations indicate, currency appreciation is the last thing that an uncompetitive country like France needs.

It stimulates production (and hence employment), unlike overvaluation, which stimulates consumption.

In practice though, as investors make money on their trades, they bring in yet more money, forcing further currency appreciation.

Lacking well developed industrial production and intra community trade, devaluation brought them higher import prices, inflation, and rising unemployment.

Currency undervaluation has become a substitute.

At the same time, it is important to prevent mineral wealth from causing unwarranted currency appreciation the dreaded Dutch disease.

Third, the rate of currency appreciation has edged up.

Their reactions range from buying up the foreign money to prevent currency appreciation to adopting capital controls, and, in extreme cases, to keeping the money out altogether.

In principle, it is easy to avoid currency appreciation keep the foreign exchange earned from, say, oil exports out of the country.

Using RMB appreciation as the primary tool to fight inflation implies accepting a temporarily higher unemployment rate now in exchange for a permanently lower unemployment rate in the future.

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

TOKYO The risk of global currency and trade wars is rising, with most economies now engaged in competitive devaluations.

Good for you! But the currency appreciation that follows will likely set off an unsustainable consumption boom, wreak havoc with your export sector, create unemployment, and sap your growth potential.

Currency undervaluation is such a potent instrument for growth for the simple reason that it creates incentives for the economy s growth promoting sectors.

A decade of wage growth exceeding productivity gains led to real appreciation, loss of competitiveness, and large current account deficits.

In response, central banks may intervene in currency markets to prevent appreciation, at the cost of accumulating low yield foreign reserves and diverting themselves from their primary goal of price stability.

Currency undervaluation à la China will not go unnoticed.

Without domestic structural change, currency appreciation would not only undermine exports, but might also decrease imports, owing to higher unemployment and lower income.

Inflation was generally lower in 2004, partly owing to currency appreciation, which offset the sharp increase in petroleum prices to some extent.

An undervalued currency enables an economy to integrate into the world economy on the basis of strong export performance. It stimulates production (and hence employment), unlike overvaluation, which stimulates consumption.

The effect will be much the same as a currency appreciation.

And yet risks to financial and fiscal stability could arise if higher inflation and currency depreciation were to spoil investors appetite for Japanese government bonds, thereby pushing up nominal interest rates.

So it began to promote its industries through an undervalued currency instead.

An independent monetary policy requires a flexible exchange rate, not a revaluation.

China does not want its large current account surplus to cause the currency to overshoot on the upside, and it may now want to slow the renminbi s appreciation because of concern about the global economic slowdown.

In 2005, China was experiencing currency appreciation, which, as other fast growing economies in East Asia have demonstrated, can stimulate the government and businesses to pursue structural reforms and industrial upgrading.

On the contrary, they should view the currency peg as a valuable gift.

It was write offs and devaluations, not austerity programs, that allowed bond prices to recover.

Eurozone membership precludes inflation and devaluation as adjustment mechanisms.

Some resist appreciation actively and openly others do so in a less visible manner.

President Miguel de la Madrid resorted to currency devaluations which in turn sparked inflation.

The won has been devalued sharply, making exports more viable.

Since the amount of foreign reserves available to defend a weak currency (a currency in low demand) is limited, a currency crisis or devaluation could be the end result.

The problem is that it can t, even with a depreciating currency.

There is a strong positive relationship across all developing countries between currency undervaluation and economic growth.

This includes such factors as home market growth constraints, liberalization and currency appreciation.

So far, however, the RMB s appreciation against the dollar has been slow.

But even the ECB cannot be indifferent to the risks of appreciation, because a strong euro may seriously complicate economic adjustment in countries like Spain, Portugal, Greece, and Ireland.

In this case, a 10 appreciation of the renminbi increases the purchasing power of a Chinese person in the US by exactly 10 , whereas his life quality does not change in PPP terms.