Sliding greenback boosts economy

Journal Date: 20 May 2003 Title: slue posting fosters prudence, S byh China Morning position Author: Kelvin Chan Summary: Not unless Asian countries cannot regain their economies, but also in US, she is scummy from the stinting down feather turning for a long time, after the worldwide stinting deterioration. In recently, US dollars deepening slide against the euro and other main(prenominal) currencies. Thus, the take down level dollar exchange also occurs in Hong Kong, because of the conjugated exchange rate with US dollars. However, according to rough economists and business enterprise leaders said, this phenomenon would cause some positive force outs on Hong Kong. For instance, the lower costs and prices, and it will lead Hong Kong to be a more competitive city. Actually, many investors started to sell greenback since the US Treasury Secretary hinted that the US government was abandoning its strong-dollar constitution to boost economic growth. While US is facing t he suffering of thriftiness; in contrast, people in Europe atomic hail 18 enjoying the increase in purchasing power because of property movements. In Europe, many businesses are using US dollars, as their currencies; therefore, the fall in greenback will cause an effect on increasing exportings of these countries.

In addition, some professors point out that, although the slide of US dollars cause out a wellbeing to Hong Kong, there besides has very little effect on it; it will only slightly pick up the export of Hong Kong, because most of Hong Kongs imports are from the same places its exports go to. Analysis: In the past, US mainl y concerned on how to apply the policy in ! graze to strong US dollars. And many investors manage to hold greenback as their currencies, because of the stableness of US dollars. Indeed, the high US dollar can make believe some(prenominal) advantages. One of the examples is that it... If you want to get a intact essay, order it on our website: BestEssayCheap.com

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