Commodity
in sentence
920 examples of Commodity in a sentence
As if on cue, that facade began to crumble, revealing an inconvenient truth: factors like high
commodity
prices and massive capital inflows had been concealing serious economic weaknesses, while legitimizing a culture of garish inequality and rampant corruption.
Latin America is exposed to lower
commodity
prices (as both China and the advanced economies slow).
Predominantly a
commodity
exporter, Russia has less need for the WTO than a manufacturer like China.
Yet, at a time when attention is supplanting money as the most valuable commodity, the impact of their decisions is far-reaching.
Sky-high
commodity
prices, rock-bottom dollar interest rates, and ample international liquidity are what Chile hopes for in the rest of the world; they are also precisely what Chile got since 2010.
Unsurprisingly, growth was swift – until late last year, when the combination of the US Federal Reserve’s gradual exit from quantitative easing and lower
commodity
prices worldwide caused a swift deceleration in economic activity.
But equally important is the strength of the Chinese economy, with buoyant industrial production fueling a sharp rise in global
commodity
prices.
Or your
commodity
exports hit the jackpot?
Suddenly, something (an increase in United States interest rates, a drop in
commodity
prices, a domestic political conflict) causes the local currency to drop in value against the dollar.
Under these circumstances, large excess capacity develops and
commodity
prices fall.
Eventually, lower
commodity
prices and lower inflation will act like a huge tax cut for households, allowing interest rates to fall further and thus stabilize economic activity.
Moreover, most plastic products are made from so-called “petroleum-based
commodity
thermoplastics.”
Given the difficulty and expense of separating plastics, the most economically viable option is often secondary recycling of a few
commodity
thermoplastics – mostly bottles, for which collection infrastructure is already in place.
By contrast, China’s real growth was three times that of Brazil and Russia, but its terms of trade actually deteriorated by 26%, because its manufactured exports became cheaper while its
commodity
imports became more expensive.
As China’s growth slows, so does its demand for oil and commodities, with severe effects for other emerging economies that depend on
commodity
exports.
Moreover, the benefits of lower
commodity
prices do not seem to have materialized among net importers, except perhaps India; if they have, they have been far from adequate to offset other growth-damaging forces.
To be sure, some have argued that this was made possible by favorable external conditions, including high
commodity
prices, which supported economic expansion.
Second, extremely loose monetary policies (zero interest rates, quantitative easing, new credit facilities, emissions of government bonds, and purchases of illiquid and risky private assets), together with the huge sums spent to stabilize the financial system, may be causing a new liquidity-driven asset bubble in financial and
commodity
markets.
Reform and high
commodity
prices are buoying the region.
Unfortunately, no one, certainly not in Asia or the United States, seems willing to bite the bullet and help engineer the necessary coordinated retreat to sustained sub-trend growth, which is necessary so that new
commodity
supplies and alternatives can catch up.
Instead, governments are clawing to stretch out unsustainable booms, further pushing up
commodity
prices, and raising the risk of a once-in-a-lifetime economic and financial mess.
Desperate to sustain their political and economic momentum, most have taken a wide variety of steps to prevent their economies from feeling the full brunt of the
commodity
price hikes.
As a result, higher
commodity
prices are eating into fiscal cushions rather than curtailing demand.
A general rise in global demand will simply spill over into higher
commodity
prices, with little helpful effect on consumption.
Some central bankers tell us not to worry, because they will be much more disciplined than central banks were in the 1970’s, when the world faced a similar
commodity
price spike.
The
commodity
price problem has snuck up on us, despite notable institutional reforms in macroeconomic policymaking all over the world.
As a result,
commodity
resource constraints that we once expected to face in the middle of the twenty-first century are hitting us today.
For a variety of reasons, mostly related to government intervention, few emerging market economies can be categorized as having flexible resource demand, so
commodity
price spikes are not having a particularly big effect on demand.
No, this time,
commodity
resources are the primary constraint, rather than a secondary problem, as in the past.
That is why
commodity
prices will just keep soaring until world growth slows down long enough for new supply and new conservation options to catch up with demand.
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