• Wed / 27 January 2021 / 16:53
  • Category: Economy
  • News Code: 99110806059
  • Journalist : 71600

Dollar depreciation may continue in 2021 too: Steve Hanke

Dollar depreciation may continue in 2021 too: Steve Hanke

Tehran (ISNA) – Janet Yellen will be the next secretary of treasury. According to some reports, the first woman in this position in the American history won’t seek a weaker dollar.

For further discussing the economic situation in the coming months, we’d asked professor Hanke for a commentary.

Steve Hanke is a Professor of Applied Economics at Johns Hopkins University and a former member of President Reagan's Council of Economic Advisers.

The main priorities of Yellen in her new role

According to professor Hanke, Yellen's main priority appears to be rationalizing the massive increase in government expenditures.

Asked about whether he thinks that the dollar’s depreciation trend will be continued in 2021 too? , Hanke said, “Yes, probably”.

President Biden unveils new $ 1.9 trillion economic relief package but would it be enough to revive the U.S economy?

According to Professor Hanke, The $1.9 trillion package will not stimulate the economy but probably slow it down. It's filled with waste, fraud, and abuse.

The package includes more than $400 billion to combat the pandemic directly, including money to accelerate vaccine deployment and to safely reopen most schools within 100 days. Another $350 billion would help state and local governments’ bridge budget shortfalls, while the plan would also include $1,400 direct payments to individuals, more generous unemployment benefits, federally mandated paid leave for workers and large subsidies for child care costs.

When the dollar is likely to move downward, then the question will be: which currencies will be the best-performing ones in 2021?

According to professor Hanke, for the last 120 years, the Swiss franc has been the world's best performing currency. It will be strong again in 2021The Senate Finance Committee on Friday approved of President Joe Biden’s move to name Yellen as Treasury secretary.

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