Decline in the value of the dollar

Assignment Help Microeconomics

Reference no: EM132473375

This questions is based on the article, "Bucking the trend," https://www.economist.com/finance-and-economics/2016/03/31/bucking-the-trend

(a) The article points out that in trade-weighted terms, the US dollar had risen by almost 20% between early July 2014 and early January 2016. What factors account for this rise before December 2015? Does the discussion in the article point to an increase in the interest rate differential between the assets denominated in US dollars and those in other currencies before December 2015 that may account for the rise?

B) The article indicates that "the dollar continued to rise for the first three weeks of the year but then the tide turned: since January 20th, the currency has fallen by 3.8% in trade-weighted terms." What factors in the US economy may have contributed to this decline in the value of the dollar?

Reference no: EM132473375

Questions Cloud

Compute the number of calendar days needed : Compute the number of calendar days needed to complete a one-acre job using the current truck/trailer combination and the larger truck/trailer combination

Discuss and describe a market : Discuss and describe a market in which prices have changed in recent months or years.

Determine what is the net delivere red cost of purchases : If the total purchases returns and allowances were $16,440 and purchase discounts were $8,900 for the year, what is the net delivere red cost of purchases?

Problem - Asset acquisition vs stock purchase : Problem - Asset acquisition vs. stock purchase. Provide the journal entry if the investor pays cash and purchases all of the stock of investee's shareholders

Decline in the value of the dollar : What factors in the US economy may have contributed to this decline in the value of the dollar?

How the carrying amount reduced : Why and how the carrying amount reduced, how they calculated the carrying amount and why for part carrying amount not changed

Journalize the transactions for the buyer perez company : Journalize the transactions for the buyer, Perez Company, using the gross method to account for purchase discounts. Assume a perpetual inventory system

Journalize the transactions for gonzalez company : Journalize the transactions for Gonzalez Company using the gross method of accounting for purchase discounts. Assume a perpetual inventory system.

Identify effect of transaction on alpha financial statement : Alpha Inc. borrows $15,000 to finance its operations by signing a note payable with a bank. Identify the effect of this transaction on Alpha financial statement

User Account

All Pages