passage twenty one (the result of the falling us dollar)

《passage twenty one (the result of the falling us dollar)》由会员上传分享，免费在线阅读，更多相关内容在应用文档-天天文库。

1、PassageTwenty-one(TheResultoftheFallingUSDollar)Likeatickingtimebomb,thefallingdollarhasgrabbedtheattentionofJapanandWestGermany,forcingthemtoconsideradoptingeconomicpolicestheUnitedStatesadvocates.TheU.S.governmentwantsthedollartofallbecauseasthedollardeclinesinvalueagainsttheyen

2、andDeutschemark,U.S.goodbecomescheaper.U.S.companiesthensellmoreathomeandabroad,andU.S.tradedeficitdeclines.Criesfortradeprotectionabate,andtheglobalfree-tradesystemispreserved.Then,thecheaperdollarmakesitcheaperformanyforeigninvestorstosnapupU.S.stocks.Thatpromptsheavybuyingfroma

3、broad—especiallyfromJapan.Also,ifthetradepictureisimproving,thatmeansU.S.companieseventuallywillbemorecompetitive.Consequently,manyinvestorsarebuyingsharesofexport-orientedU.S.companiesinanticipationofbetterprofitsinthenextyearorso.Butthatisaratherfaddishnotionrightnow;ifcorporate

4、earningsaredisappointingininterestrates,thestockmarketrallycouldstall.ImprovingU.S.competitivenessmeansadeclineinanother’scompetitiveness.JapanandWestGermanyarevergingonrecession.Theirexport-orientedeconomiesarefacingmajorproblems.JapanisworriedaboutthedamagethestrongyenwilldotoJa

5、panesetrade.WestGermanyisalsoworried.SharepricesinFrankfurtplummetedthispastweek.Bonnisthoughttobeconsideringacutininterestratestoboostitseconomy.Couldthefallingdollargetoutofhand?Ifthedollarfallstoofar,investorsmightloseconfidenceinU.S.investments—especiallythegovernmentbondmarke

6、t.Themoneytofinancethefederalbudgetandtradedeficitscouldmigrateelsewhere.Inflationcouldflareup,too,sinceJapaneseandGermanmanufacturerswilleventuallypassalongpricehikes—andU.S.companiesmightfollowsuittoincreasetheirprofitmargins.TheU.S.federalReservethenmightneedtostepinandstabiliz

7、ethedollarbyraisinginterestrates.AndhigherinterestratescouldcausetheU.S.economytoslowdownandendtheWallStreetRally.Worriedaboutthesesideeffects,FederalReservechairmanPaulVolcherhassaidthedollarhasfallenfarenough.Whatistheequilibriumlevel?Probablynearwhereitisorslightlylower.Itallde

8、pendsonwhentheU.S.tradedeficittur