An appreciation can be a reflection or opinion.
Appreciation is the act and result of appreciating . This verb (appreciate), in turn, has multiple meanings: it can be about perceiving something through the senses ; to increase the value of a currency ; or defining the price of an element .
Appreciation as reflection or interpretation
The term is also often used with respect to the subjective assessment of a fact or situation . An appreciation, in this sense, is an opinion , an interpretation or a reflection.
“I do not agree with the judge's assessment, for me the accused should have been sentenced to life imprisonment”, “I think there was an error of judgment on the part of the government, which underestimated the scope of the crisis” y “I still think the same, since the latest events have not changed my assessment” son frases que muestran este uso.
In the first example, the sender states that he does not agree with the way in which the judge interpreted the case, since, in his opinion, the latter did not apply the correct sentence, but rather (as we can deduce) he was too benevolent with the accused. In the second, there is another incorrect assessment, in this case easier to calculate, given its lesser subjectivity: the government believed that the crisis would not cause such serious effects, and for that reason it did not prepare adequately to face them. .
Finally, we have a less defined sentence, in which the speaker claims to maintain his initial assessment regarding a given topic, relying on the fact that the most recent events have not been compelling enough to change his mind. Here we are once again faced with a more subjective situation, since if these were exact values there would not be more than one possibility: whether it is an opinion about a work of art or an attitude of others, in many cases the points of view are accepted. opposites.
The term in economics
The notion of appreciation frequently appears in the field of economics and finance . As we already indicated above, appreciation represents an increase in the value or price of a currency in comparison to that of another or others , as long as there is a floating exchange rate .
The concept of floating exchange rate , which is also known by the name of flexible exchange rate , is used in the field of economics to refer to an exchange rate regime (set of policies referring to the value of a particular currency) in which the market It fixes the value of the currency without the monetary authorities intervening in this decision. This gives rise to the floating currency .
When the price of a currency increases in the foreign exchange market , appreciation occurs. On the contrary, if that price falls, depreciation takes place. Although governments can intervene in the exchange rate in different ways, appreciation and depreciation usually occur according to the free play of supply and demand in the exchange market.
The increase in the price of one currency with respect to the value of another or others is called appreciation.
Some examples
Let's look at three sentences to understand some meanings of this term: “The rain made it difficult for those who were located far from the stage to appreciate the show,” “According to economists, the appreciation of the peso can lead to a drop in exports .” , “The appreciation of the euro against the yuan opens new business possibilities” .
The first sentence uses the word appreciation that brings its meaning closer to that of "enjoyment", although it does not leave out concepts such as "understanding" and " perception ". The rain was an obstacle between the public and the show. The other two talk about the rise in the value of two currencies, the peso and the euro, and its potential consequences.