FREE The value of the American Dollar Essay (original) (raw)

"We expect the markets to reflect the true value of currency - the way that currencies ought to be valued is based upon economic activity, a fiscal policy, monetary policy of the respective governments, the potential for growth, and the potential for long-term viability of economies that's how our respective currencies ought to be valued- (President Bush) .
Over the past two years the value of the American dollar relative to other currencies, such as the Japanese Yen and the Euro, has declined dramatically. Much debate has swirled around this topic. As the above quote from President Bush points out, the current administration that the value that a currency holds should continually change relative to other currencies based upon monetary and fiscal variables. The Bush administration's pursuit of a market driven value for the American dollar looks a lot like devaluation. Since July of 2001 the value of the dollar relative to the Euro gas declined some 31%, from a Euro buying 81 cents, to a Euro buying over $1.20. The fall of the dollar even seems contradictory. "The American economy and profits sprinting ahead, while keeping the Euro area's economies are barely able to maintain a walking peace and Japan is just getting off its knees. However, the falling value of the dollar, taken in the context of the United State's trade deficit makes perfect sense, and follows the economic theory." .
On the "Kudlow and Kramer" show on MSNBC both the hosts, not known for their great contributions to the economic or academic thought, opened on the trade deficit with china. Kramer used the current account deficit, currently at 5.2% of U.S. GDP, as an excuse to attack the policies of President Bush, who he blames for the deficit. Interestingly, neither host realized that a tidal wave of economic opinion is linking the falling value of the dollar to the huge current account deficit, the trade imbalance with China being only one component of which.

1. Effects of Dollarization on the World Economy

The main reason for dollarization is because of greater stability in the value of the foreign currency over domestic currency. ... This case can be found in most of the former Soviet Union, and most of Latin America, because they use foreign currency in a way which is not legal tender. ... Keynesian (2010, p.346) argued that, people globally use the money in three different purposes such as; transaction demand, precautionary demand, and store of values. ... Finally, people use the money as a store of value in term of savings account individually. ... So, people use the money as a store of valu...

2. AMERICAN VALUES

American Values By Nicolaj Bundesen What are American Values? ... American Values, it has been said, means different things to different people, but with the same major goal. ... An eighteenth century white male plantation owners' answer to the question, "What are American values?" ... Furthermore he says that in Amarica everything is possible, you can make a single dollar grow to millions in a very short period of time. ... In the poem United States of America she expreses that instead of loving material values she loves the mentality and attitude in the country. ...

3. America and the Power of Gold

This tightens Economical situation in America, because it costs America billions of dollars for the thousands of troops they send to foreign Countries. ... The Euro may take more years to gain value and to obtain creditability to be a major currency to take a big role like US Dollars. ... Future situation between America and other countries such as the Euro shall obtain its value and play a big role in Europe. ... In other words, America cannot afford to be recession nor shall US Dollar will lose its value against foreign currencies. ... America plays Main role to keep peace in the wor...

4. Bank of America/US Bank Financial Analysis

Banks Current Market Value The evaluation of the market value of the banks is through an analysis of their market capitalization. ... The current market value by the total assets of the banks indicates that the US bank has a market value of 793844 million dollars as compared to 760599 million dollars for the US bank. This gives a higher prediction of the current market value for the US Bank to the Bank of America. ... The Bank of America has a higher net income of 3101 million dollars as compared to the net income of 2755 million dollars of the US bank. ... The best acquisition will be the US...

5. International Trade Between Canada And Usa

This trend continued into early 2002; but the Canadian dollar has regained ground recently, rising in value to above US$0.65. ... This change in investor sentiment was one of the factors behind the reduced value of the Canadian dollar during 2001. ... If demand exceeds supply, the value of the dollar will go up. If the supply exceeds demand, its value will go down. ... If investors are confident that the Canadian economy will be strong, they will be more likely to buy Canadian assets, pushing up the dollar's value. ...

6. Estimating The Exchange Rate of the Canadian Dollar

Estimating The Exchange Rate of the Canadian Dollar 1. ... Any changes in the real interest and real exchange rate depends on the American economy, therefore whatever is set by the United States make a great impact on the Canadian economy as well. ... It predicts that higher growth and higher inflation rate differentials both lead to a depreciating Canadian Dollar value. ... In our model, 'Æ'~Æ'n is a constant or intercept, 'Æ'áÆ'n captures the effect of the Canadian dollar's exchange value to the changes in inflation between the U.S. an...

7. Comparing Ancient Rome and America

Those two things are happening in the United States today,whether it be the 87 million dollar military grant, the gang violence, or the thieving of the most recent presidential election. The current state of America is starting to seem a lot like the fall of Rome, one of the most powerful civilizations to date, much as America is. ... America's current situation has many similarities. Some of the current problems of America include(but are not limited to): political corruption, a decline in morals and values, military spending, inflation, dangerous technology, public health, and unem...

8. People for the American Way

They as well defend the state from attack, while building and nurturing communities through their values. ... A generation that will continue to champion and maintain the set values for prosperity of America. ... An estimated four hundred and eighty thousand dollars contributed to the Democrats. Three thousand five hundred dollars was their contribution to the Republicans. ... It 2002 their revenue exceeded seven million dollar. ...

9. Corprate America Tastes Fruity

That includes the minimum wage for the South American full time employees who work like no American probably has for over a generation. ... That's about 8 dollars, maybe more, maybe less. ... A mostly white community, with a similar set of values (true I am perhaps over generalizing, but this contrast still begs to be made). ... They"re almost all Asian, African-American or Hispanic. With good values, and dreams in their lives. ...

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