The Causes of Fluctuations in the Value of Dollars: Since the 1980s
Abstract
The purpose of the essay is to explain why the dollar has fluctuated since the 1980s and present several elements that affect the dollar value. At the same time, the essay states in detail how the value of the dollar changes as these factors vary. It finds that interest rates, inflation, political and economic stability of the United States and debt level all impact the value of the dollar, and every fluctuation in value is affected by more than one factor.
Keywords
Full Text:
PDFReferences
Amadeo K. U.S. dollar value measured 3 different ways [Internet]. New York: The Balance; [updated 2020 Jul 23; cited 2018 Nov 20]. Available from: https://www.thebalance.com/value-of-us-dollar-3306268.
Collins J. Difference between appreciation & depreciation [Internet]. California: Bizfluent; [updated 2017 Sep 26; cited 2018 Nov 19]. Available from: https://bizfluent.com/info-8036556-difference-between-appreciation-depre- ciation .html.
Lioudis N. How national interest rates affect currency values and exchange rates [Internet]. New York: Investopedia; [updated 2019 Jul 13; cited 2018 Nov 21]. Available from: https://www.investopedia.com/ask/answers/040315/how-do-changes-national-interest-rates-affect-currencys-value-and-exchange-rate.asp.
Krugman PR, Obstfeld M, Melitz MJ. International economics: Theory and policy. 10th ed. Boston: Pearson; 2015.
Upper C. How safe was the “safe haven”? Financial market liquidity during the 1998 turbulences. Deutsche Bundesbank Working Paper 2000.
Twin A. 6 factors that influence exchange rates [Internet]. New York: Investopedia; [updated 2020 Apr 3; cited 2018 Nov 21]. Available from: https://www.investopedia.com/trading/factors-influence-exchange-rates.
Fang WS, Lai YH, Miller SM. Export promotion through exchange rate changes: Exchange rate depreciation or stabilization? Southern Economic Journal 2006; 72(3): 611–626.
McCauley RN, McGuire P. Dollar appreciation in 2008: Safe haven, carry trades, dollar shortage and overhedging. BIS Quarterly Review 2009; 85–93.
DOI: http://dx.doi.org/10.18686/fm.v5i4.2690
Refbacks
- There are currently no refbacks.
