The effects of U.S. dollar depreciation relative to yuan on the economies of the USA and China

This paper will tend to analyze the impact the U.S. dollar depreciation has on both the Chinese and the U.S. economies. This depreciation could impact both negatively and positively on the U.S. economy, this may benefit the Chinese economy as the prices of the imports from China will drastically become higher while the value of its exports to China would increase. The paper therefore addresses both scenarios as bellow.Advertising We will write a custom essay sample on The effects of U.S. dollar depreciation relative to yuan on the economies of the USA and China specifically for you for only $16.05 $11/page Learn More The effect of U.S. dollar depreciation relative to Chinese yuan Devaluation can simply be defined as the decrease in the value of a country’s currency relative to that of a foreign country. The U.S. currency depreciation can be traced back to the period between 2002 and 2008. This depreciation, however, has not been on a steady move, for example, in the years preceding the 2002-2008, the decline was so massive that it was felt greatly against the major currencies, among which are the euro, the Japanese yen, the Mexican peso, and the Chinese yuan (Elwell 1). Elwell argues that since the mid of the year 2009, the US dollar fell massively against the other major currencies recording a fall of about three percent against the yuan (1) The effect of dollar depreciation on the U.S. economy Depreciation of the U.S. dollar relative to the Chinese yuan will make the U.S. exports cheaper and imports more expensive; by doing so, the products in China will become more competitive against the third country’s products whose currency is pegged to the dollar (Fan 3). Fan points out that, ‘depreciation can also lead to improved economic growth by stimulating import’ which can also lead to an increase in the demand of import, and benefit the Chinese export’ (4). It is therefore important to note that the dollar depreciation will cause the price of imports to increase in relation to the prices of exports that are traded between the USA and China, this will eventually have a negative effect on both the businesses and the consumers in the sense that their purchasing power will tend to decline (Elwell 10). The economic trend remained constant during the period of the recession (2008-2009), and therefore the demand for loans continued to be very low for the consumers and the businesses (13). The effects of U.S. dollar depreciation on China economy This simply means that the Chinese yuan has appreciated relative to the U.S. dollar, therefore the effects of this appreciation are expected to be negative across all sectors. However, the change in the price is slightly different between agricultural and non-agricultural sectors (Yang et al 5). Yang et al in their analysis found out that the agricultural sector is more land incentive and therefore their prices fall more relative to other fact ors and this results in the decline in the agricultural products compared to those of the non-agricultural products due to reduced input cost, and as has been witnessed, the trade balance improves for the agricultural products as a result of falling prices (5-7).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In addition, the adverse effect of the yuan currency appreciation increases as long as the deflation is concerned. Deflation imposes several challenges, including shrinking consumption and investment, raising unemployment rates as well as increasing the bad debt that is not healthy for the banks (Yang et al 6). The deflation further weakens the demand since the consumers who anticipate for a further reduction in the price levels may choose to suspend consumption, therefore the yuan revaluation clearly depicts a decline in its GDP, imports, exports, and the price level (Yang et al 8). In conclusion therefore, the appreciation of the yuan would adversely affect consumers and the business both negatively and positively. When the falling dollar is good or bad for the USA A falling dollar simply means that the value of the dollar has gone down relative to the currency of the other trading partners. Several studies have indicated that the reduced value of the dollar is a result of the low interest rates, these low interest rates coupled with the budget deficit are what fuels inflation. If the dollar continues to weaken against the other currencies, especially the Chinese yuan, this may have an adverse effect on the foreign investment, hence scaring away the foreign investors (Cowen 2). A fairly increased industrial production worldwide is one of the causes of the increased products prices in the USA, a weak dollar therefore boosts the economy, on the one side, and undermines the welfare of the citizens, on the other hand (Elwell 13). On the other hand, a falling dolla r may be bad to the U.S. economy in a number of ways; first, intense precariousness can raise the general concern and discourage economic commitment. Therefore, if the dollar falls, it will scare away the foreign investors and, as a result, it hurts the U.S. economy. In conclusion, therefore the falling dollar is more of a benefit than a cost to the United States economy. Works Cited Cowen, Tyler. â€Å"The Dollar Is Falling, and That’s Good News†. The New York Times, 2 December 2002: Print. Elwell, Craig. The Depreciating Dollar: Economic Effects and Policy Response. Washington, D.C. Congressional Research Services, 2011. Web. https://digital.library.unt.edu/.Advertising We will write a custom essay sample on The effects of U.S. dollar depreciation relative to yuan on the economies of the USA and China specifically for you for only $16.05 $11/page Learn More Fan, Emma X. Implications of a US Dollar Depreciation for Asian Developing Countr ies. Philippines: Asian Development Bank, 2002. Web. https://www.adb.org/. Yang, Jun, Zhang, Wei and Tokgoz, Simla. â€Å"The Macroeconomic Impacts of Chinese Currency Appreciation on China and the Rest of world†: A Global Computable General Equilibrium Analysis. Washington, D C: International Food Policy Research Institute Publication, 2012. Print. This essay on The effects of U.S. dollar depreciation relative to yuan on the economies of the USA and China was written and submitted by user Shiloh Mclaughlin to help you with your own studies. 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What is the Job Market for Web Developers

What is the Job Market for Web Developers in the last few years, there has been an explosion of companies offering to train people in web development through bootcamps, online instruction, classes, and nearly anything else to get people coding. the target audience for most of these are people who did not study coding in the past but now want to change career paths. with so much excitement around start-ups and technology, coding know-how is becoming more and more an incredibly valued skill. but what can new web developers expect as they enter the development career marketplace?when it comes to salary, there is some disagreement depending on what source you prefer. the united states department of labor suggests a range from as low as $33k to $105k. this is obviously quite a range and surely covers a wide spectrum of employment situations. other sources put the range from around $75k to $120k for web development positions.in terms of job availability, the timing really could not be better for web developers. there are a plethor a of jobs and not enough people with the right skills for hire. 61% of executives say they face recruitment challenges when it comes to highly skilled and technical positions. as the gap between qualified workers and unfilled jobs continues to grow, it is expected that the gap will grow even greater for those looking for web developers. as any business 101 class will teach you, high demand and low supply can certainly lead to price increases. in this case, price equals web developers’ salaries!so strike while the iron is hot! i have a feeling in 400 years, they will look back at this time period and see anyone who cannot code as practically illiterate. while that might sound crazy, it is basically how we look at the past with regard to reading. perhaps the best part of it all, once you have those skills, you never what brilliant idea might strike you and inspire you to create your own start-up and become your own boss!

Keynesianism Research Paper Example | Topics and Well Written Essays - 1000 words

Keynesianism - Research Paper Example Estimated to be worth about $787 billion, the stimulus issued by the Obama administration was to save over 90,000 jobs (Calmes, 2009). The stimulus was broken down to $288 billion, allocated to tax cuts, $224 billion for unemployment benefits, education and healthcare, and $275 billion for job creation through grants and loans from government. The main aim of the plan was to restore confidence in the economy and to spur economic growth given the monetary policy had failed to save the situation. It was also to bring confidence by reducing bonuses to senior executives whose companies had received TARP funds. According to Williams and Calabrese (2013), in a scientific society, there are about four types of theories: descriptive, explanatory and predictive, instrumental and normative. Descriptive and explanatory theories can be categorized under positive while the other two are grouped under prescriptive or normative. Descriptive theories can be said to be forerunners of explanatory theories as they tend to find how different constructs are interrelated. These may include core elements, characteristics, relationships, or dimensions. They are meant to set stage for explanation and prediction. Explanatory theory on the other hand gives insights on what caused an outcome in way that it can be observed. Predictions come in as a test of explanations. instrumentals depend on predictions, they work on the fact that if something occurs, another thing will occur as a result. The Obama Stimulus was positive in nature. It focused on the actual facts on the ground as opposed to general assumptions. At the time of its launch, unemployment rate was at 9%, and to solve this, the government allocated $275 billion for job creationin since monetary policy had failed to bear concrete fruits. This plan was also based on normative theories as it determined how the economy behaved within a time frame of ten years. Within this