Allocation
in sentence
358 examples of Allocation in a sentence
To put it in economics jargon, efficiency requires equating the marginal cost associated with
allocation
(both in acquiring information about the relative benefits of different projects and in monitoring investments) with the marginal benefits.
Fiscal reform will determine many things: the components of domestic income and demand that will drive structural change on the supply side, the
allocation
of income and expenditure across levels of government, and the embedded incentives that this
allocation
implies.
The first is to agree on a fair
allocation
of refugees within Europe; despite their vast numbers, these desperate people must be provided with shelter, food, and support.
Its Sustainable Development Goals (SDGs) – the important agenda that will shape the
allocation
of trillions of dollars of spending on government aid over the next 15 years – include an unmanageable 169 complex development targets.
But, as the economy becomes richer and more complex, there will be no escaping the market imperative in internal credit
allocation.
Foreign participation in the financial sector brings expertise needed to provide more efficient savings instruments, risk management, and
allocation
of capital.
Indeed, over the last seven years, China’s reliance on bank-based capital
allocation
has led to the same mistakes that caused the 2008 financial crisis in the advanced economies.
But while governments dictated broad sectoral priorities, banks decided the firm-by-firm
allocation
and extended credit via loan contracts, which imposed financial discipline.
If Japan and South Korea had instead used direct government finance, capital
allocation
would almost certainly have been worse.
If desirable real estate is in scarce supply, credit creation and
allocation
can at times be driven not by rational analysis of alternative investment projects, but by self-reinforcing cycles in which more credit drives asset prices higher, which then sustains expectations of further rises, leading to more borrowing demand and credit supply.
In theory, bank-led resource
allocation
should have ensured that only viable projects were financed.
The challenge is not simply to increase investment, but also to ensure that it is sustainable, unlike before the crisis, when excessive
allocation
of capital to real-estate development caused construction and related sectors to become overheated.
The most significant deliverable of the OECD’s BEPS initiative lies in its new country-by-country reporting requirements, which force multinationals to provide aggregate information annually, in each jurisdiction where they do business, relating to the global
allocation
of income and taxes paid.
On the positive side, the revival of China’s stock market in a low-interest-rate environment represents an important shift in asset
allocation
away from real estate and deposits.
Given that the new global development targets – like the current Millennium Development Goals, which have focused on health, hunger, and education – could guide the
allocation
of hundreds of billions of aid dollars, choosing the right areas on which to focus is critical.
It is easy to assume that the recent split between Qatar, on the one hand, and Bahrain, Egypt, Saudi Arabia, and the United Arab Emirates, on the other, over Qatar’s support for jihadist groups reflects these countries’
allocation
of loyalties.
This hybrid system clearly impedes credit
allocation
from catalyzing development, while creating and sustaining vested interests opposed to reform.
Moreover, while South Korea can afford to increase public spending today, raising expenditure without paying careful attention to resource
allocation
will eventually undermine fiscal sustainability.
Besides damaging public accounts and imposing a severe fiscal sacrifice on the country, the abnormally high level of the Selic rate (the Brazilian overnight interbank rate) inhibited the “animal spirits” of entrepreneurship, distorted resource allocation, and impeded the development of the real-estate and capital markets, while causing currency appreciation.
For example, one important suggestion is to increase the number of selectable objectives in step with each country’s
allocation
of EU funds.
So more than half of GDP is non-market economic
allocation.
As a result, governments have been confined to tinkering at the margins of markets’
allocation
of resources.
In short, while China has a problem with inefficient capital allocation, it is nowhere near a solvency or liquidity crisis.
As the Brexit vote shows, Europe’s political class greatly underestimated the strains caused by free mobility across borders – a shibboleth of the failed neoliberal project of maximizing market-based resource
allocation.
That is why we believe that the annual
allocation
of Blue Bond emissions should be delegated to an Independent Stability Council.
The council would offer a take-it-or-leave-it proposal to the participating countries on the
allocation
of Blue Bonds for the coming year.
Each national parliament would then adopt the proposal, given participating countries’ role in providing the guarantees implied by that
allocation.
Within this mechanism, countries that pursued reckless fiscal policies could be gradually excluded from the system by lowering their Blue Bond
allocation.
And countries unhappy with the system’s evolution could gradually exit it simply by rejecting their annual Blue Bond
allocation
for a sufficient number of years in a row – thereby no longer issuing Blue Bonds or guaranteeing the fresh Blue Bonds of others.
The tradition that developed as a result, in which banks were the main source of finance to industry, is very different from both the more capital-market-oriented financial systems of America and Britain, and the system of state-led credit-rationing and capital
allocation
that has been historically prevalent in France and Japan.
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