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Essay heading: Foreign Exchange Management
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Business |
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| Date added: |
July 23, 1996 |
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| No of pages / words: |
3 / 632 |
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0 times |
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Essay content:
Between 1980 and 1984 the dollar had high interest rates, between 11.3% and 13.7%. The high interest rates were to combat high inflation in the US economy, the interest rates also caused the dollar to appreciate against other currencies. Over the last 2 years inflation has fallen to 5%, much lower than the 10% rate in 1981...
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A lower inflation rate could result in the US government lowering interest rates, which could cause the US dollar to decline. Other warning signs of a possible weakening dollar is are the rising deficit and low growth. US deficits have increases form $69 billion to $190 billion, almost tripling in just 4 years...
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