Commodity
in sentence
920 examples of Commodity in a sentence
The economic fundamentals of supply and demand remain the key factors in driving the direction of
commodity
prices and determining whether the
commodity
super-cycle will persist.
While high
commodity
prices played a part, privatized and new enterprises were the fastest-growing part of Russia’s post-communist economy, and the government played an important role by ensuring macroeconomic stability, maintaining a balanced budget, and using oil revenues to create significant foreign-currency reserves.
Even the one factor that has effectively increased disposable incomes and augmented demand – sharply declining
commodity
prices, particularly for fossil fuels – is ultimately problematic.
In particular, lower energy and
commodity
prices are likely to dampen inflationary pressure.
Add falling
commodity
and energy prices to the mix and there is a risk that inflation expectations will remain too low to sustain a balanced recovery.
The Fed should regard lower
commodity
prices, reduced inflationary pressures, changes in the labor market, and further disruptive technological shifts as sufficiently convincing arguments to postpone a rate hike.
While Western investment drove economic growth in Central and Eastern Europe, the
commodity
boom sustained Russia’s geopolitical revival.
Followed closely by a collapse in
commodity
prices, it dealt a devastating shock to the “transition economies.”
Emerging economies’ leaders fear spillover effects in
commodity
markets and distortions of exchange rates and capital flows that may compromise their own focus on financial stability.
Almost all of the world’s developed countries consider themselves, and are, social democracies: mixed economies with very large governments performing a wide array of welfare and social insurance functions, and removing large chunks of wealth and
commodity
distribution from the market.
The turning point came in 2013, when the expectation of rising interest rates in the United States and falling global
commodity
prices brought an end to a multi-year capital-inflow bonanza that had been supporting emerging economies’ growth.
China’s recent slowdown, by fueling turbulence in global capital markets and weakening
commodity
prices further, has exacerbated the downturn throughout the emerging world.
The country is resource-poor and did not benefit from
commodity
booms, unlike many of its continental peers.
We know that hikes in public investment, just like
commodity
booms, all too often end in tears.
At the same time, emerging-market growth should start to become less sensitive to US interest rates and the dollar,given lower external borrowing needs, the relative lack of borrowing in dollars specifically, and reduced dependence on
commodity
exports.
If anything, inflation is now falling further globally as
commodity
prices adjust downward in response to weak global growth.
That may not seem like such a bad thing, given today’s excessively low inflation (partly a result of falling oil and
commodity
prices); the risk, of course, is that inflation will overshoot.
The real worry, however, is not just falling
commodity
prices, but also massive capital outflows.
The search for higher yields drove investors and speculators to developing countries, where the inflows increased leverage, propped up equity prices, and in some cases supported a
commodity
price boom.
The problem is especially severe in commodity-exporting developing economies, where firms borrowed extensively, expecting high
commodity
prices to persist.
To be sure, Brazil’s economic growth over the last decade owed much to the
commodity
boom that has also benefitted its South American neighbors.
Enthusiasts describe it as a new brand of modern industrial policy that can help to push Brazil beyond its traditional role as a
commodity
exporter.
Trust is a vital
commodity
for all politicians.
While
commodity
prices are always more variable than those for manufactured goods and services,
commodity
markets over the last five years have seen extraordinary, almost unprecedented, volatility.
Dollar
commodity
prices could plunge at any time, as a result of a new recession, an increase in real interest rates in the United States, fluctuations in climate, or random sector-specific factors.
But some
commodity
exporters still seek ways to borrow that won’t expose them to excessive risk.
Exporters of any particular
commodity
should issue debt that is denominated in terms of the price of that commodity, rather than in dollars or any other currency.
The advantage of such bonds is that in the event of a decline in the world price of the underlying commodity, the debt-to-export ratio need not rise.
When one asks finance ministers in commodity-exporting debtor countries, they frequently reply that they fear insufficient demand for
commodity
bonds.
That is a surprising proposition, given that
commodity
bonds have an obvious latent market, rooted in real economic fundamentals.
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