Word: dollarization
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
...experience firsthand a bittersweet phenomenon of the U.S economy. Stigler's Nobel Prize carries a cash award of 1.15 million Swedish kroner, which until only a few weeks ago was the equivalent of $182,000. Since then the Swedish government, pressed by the rising value of the U.S. dollar as well as its own economic problems, has devalued the krona. When Stigler finally receives his award, he will actually get only about...
...dollar has been on an upward vector against nearly all the world's major currencies for a full two years, confounding predictions of bankers, businessmen and economists alike. They fully expected the greenback to begin weakening this year as interest rates fell, because much of its strength derives from the massive inflow of foreign capital attracted by the high returns on U.S. investments. Instead, the dollar has kept getting stronger, largely because inflation has been declining so rapidly in the U.S. and returns are still high compared with those in other countries, where interest rates have also dropped...
...prospered widely from these developments; the same size budget can now buy more Italian wines or French food processors. Life is also sweeter for American tourists traveling abroad (see box). Importers and corporations that buy raw materials from overseas have seen their costs cut dramatically. But the strong dollar has been a disaster for American exporters of everything from textiles to computer terminals, because it translates to foreign buyers exactly like a hefty price hike...
...denies that the strong dollar is stunting growth in the U.S. Nearly one-sixth of the economy depends on exports. It is estimated that each $10 billion in the trade deficit increases the jobless rate by .7%, or more than 500,000 people. C. Fred Bergsten, director of Washington's Institute for International Economics, believes that "the trade deficit is the biggest single factor pushing the economy down." Building new trade barriers, however, would only sap the economy further by propping up sickly industries, raising prices for consumers and inviting reprisals from other countries...
...more acute. European nations like France may have to devalue their currencies further or simply allow them to weaken so that these nations can help their sick economies while protecting their domestic markets from cheap imports. In Spain, for instance, the peseta fell to a historic low against the dollar last week, and the new Socialist government is expected to let it continue falling. The U.S. will suffer even more if its economy gets out of sync with the rest of the world. Should business and consumer spending pick up quickly in the U.S., imports would accelerate while foreign customers...