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The authorities probably would not have moved when they did had it not been for growing market pressure for a depreciation that could help counteract weakening economic growth.
Furthermore, as the legal depreciation period differs between Japan (17 years) and Germany (20 years), the data have been standardized for a depreciation period of 20 years to make them comparable.
As stocks fell, investors appear to have reverted back to Tuesday's mentality, pulling their money out of risky investments like equities and putting it into lower risk ones like U.S. Treasuries, which pose almost no risk, save for a depreciation of the dollar.
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Mozilla, for example, announced a depreciation plan for its Firefox browser as early as September 2014.
"Looking at the international and domestic economic situation, currently there is no basis for a sustained depreciation trend for the yuan," it said.
Suppose, to stimulate the slumping but very large Japanese economy, unrestrained monetary expansionists aimed for a sharp depreciation of the yen below its current PPP rate.
"Directors indicated that the size of the U.S. current account deficit did not appear sustainable in the longer term," the report said, "and that it raised concerns that the dollar might be at risk for a sharp depreciation, particularly if productivity proved disappointing".
For one thing, it needs to include microeconomic liberalisation (even if only trade) and fiscal equilibrium as sources of pressure and inducement for productivity increases (ie, for a sustainable depreciation of the real exchange-rate).The case of Brazil is particularly apt to understand such a need.
But he distinguished between the effects of such a depreciation arising "for no underlying reason" and a run on sterling that might result from a vote to leave the European Union – commonly known as "Brexit".
They also added an extra holding period (over five years), a category of assets (collectibles), a depreciation recapture for real estate and four new rates.
However, did you know that you can claim a depreciation deduction for your fancy mobile phone, provided that you own it for the "convenience of your employer" or if it is required as a condition of employment?
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com