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Adjustment in sentence

880 examples of Adjustment in a sentence

As the Nobel laureate economist Robert Mundell and others spelled out in the 1960’s, relinquishing nominal exchange rates emphasizes three alternative mechanisms to cushion regional adjustment: inter-regional fiscal transfers, intra-union migration, and, most importantly, labor markets capable of adapting to shocks.
Now, given monetary union, the adjustment must be carried out by changing domestic prices relative to tradable goods – that is, by engineering a depreciation of the real exchange rate.
Demand-side policy and structural adjustment are not mutually exclusive.
All of this suggests that continued structural adjustment is needed in China.
But the reality is that China has been engaged in such adjustment for a long time, with unsatisfactory results, indicating that complementary demand-side policies may be needed.
Moreover, while slower growth is unavoidable because of adjustment, there is a limit to how low a growth rate China can accept.
If it does, China’s leaders could probably concentrate on structural adjustment, without considering additional stimulus.
In order to avoid a hard landing that would make structural adjustment extremely difficult to implement – not, it should be noted, to prop up growth – another stimulus package that increases aggregate demand through infrastructure investment is needed.
Structural adjustment remains absolutely critical to China’s future, and the country should be prepared to bear the pain of that process.
That way, the burden of adjustment would be shared with other creditors, as has occurred in Greece, and the economy would gain time to recover, particularly as investments in the world’s largest oil reserves began to bear fruit.
Now, each day’s closing exchange rate will influence the following day’s rate, implying adjustment toward market levels.
Nonetheless, many are fretting that China’s exchange-rate adjustment has triggered a “currency war,” with other emerging economies devaluing as well.
But, more than a year after the economic fundamentals swung against emerging markets (and especially away from commodities) and toward the United States, this adjustment was due.
And a more appropriate adjustment for changes in the cost of living implies a substantially greater gain.
But there are reforms that can facilitate economic adjustment, and thus ease social pain by countering the growth in long-term unemployment.
Trump is, they argue, simply forcing an adjustment toward sovereignty, after a prolonged period of international overreach.
Without the market mechanism, the adjustment is taking place with too little information and too many perverse incentives, making its impact on production and welfare even more devastating.
In the interim, the burden of adjustment will fall largely on monetary policy, which will be particularly challenging given the structural “tightness” in liquidity in the more productive sectors.
Others, however, have noted that Estonia pursued strict austerity in the wake of the crisis, avoided a financial crisis, and is now growing again vigorously, whereas Greece, which delayed its fiscal adjustment for too long, experienced a deep crisis and remains mired in recession.
The IMF’s “Tough Choices” on GreeceATHENS – The International Monetary Fund’s chief economist, Olivier Blanchard, recently asked a simple and important question: “How much of an adjustment has to be made by Greece, how much has to be made by its official creditors?”
But that raises two more questions: How much of an adjustment has Greece already made?
In May 2010, the Greek government agreed to a fiscal adjustment equal to 16% of GDP from 2010 to 2013.
Indeed, Greece’s post-2010 adjustment led to economic disaster – and the IMF’s worst predictive failure ever.
New loans for failed policies – the current joint creditor proposal – is, for them, no adjustment at all.
The IMF’s Article IV states: “In particular, each member shall … avoid manipulating exchange rates or the international monetary system in order to prevent effective balance-of-payments adjustment or to gain unfair competitive advantage over other members…”Setting the rules will take time.
Eventually, a major adjustment of the official rate becomes inevitable.
In Europe’s case, these problems are rooted in a system with few escape valves and adjustment mechanisms.
These policies comprised the structural adjustment programs (SAPs) of the 1980s and 1990s, when developing countries were forced to cut social programs, privatize public services, deregulate industries, eliminate trade protection, and make their labor markets more “flexible” (a euphemism for making it easier to fire workers).
On the supply side, permanently lower output makes fiscal adjustment even more compulsory; but, on the demand side, a weak private economy lacks the resilience needed to weather fiscal retrenchment.
At this stage, struggling European countries evidently cannot afford to put public-sector adjustment on hold to concentrate on private-sector balance sheets.
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