Equilibrium
in sentence
394 examples of Equilibrium in a sentence
Markets are just moving towards a new
equilibrium
with higher interest-rate spreads, which reflect the higher default risk of some European countries – a bit like in pre-euro times, though much less extreme.
There is no reason for panic, and every reason to stay calm and wait for the new
equilibrium
to emerge.
Low
equilibrium
interest rates are an important anchor for local and external debt prices in emerging markets.
Second, weaker potential growth – the counterpart to lower
equilibrium
interest rates – has created fertile ground for populism in countries lacking robust institutions.
Despite lower potential growth and
equilibrium
interest rates in developed economies, average absolute returns for emerging markets may be no lower than in the past.
But another wave of global liquidity, prompted perhaps by a third round of quantitative easing in the United States, could upset this delicate
equilibrium.
Over the course of my career, I have tried to determine whether there is such a thing as an
equilibrium
oil price.
My conclusion is that a good indication of this moving
equilibrium
does exist: the five-year forward oil price, or the amount paid for guaranteed delivery of oil five years from now.
But these unconventional policies are turning out to be a classic game-theoretic bad equilibrium: each central bank stands to gain by keeping interest rates low, but, collectively, their approach constitutes a trap.
The outcome may seem a disaster, but it is also the most rational choice – the “Nash equilibrium” of the traveler’s dilemma game.
The fundamental problem is simple: the market cannot be brought back into
equilibrium
when savers do not want to lend to those who would be willing to take these savings.
Liberal democracy is inherently fragile because reconciling its terms does not produce a natural political
equilibrium.
Achieving a higher growth
equilibrium
is rarely a gradual or incremental transition.
Prices moved smoothly up as demand outpaced supply and rushed back down when the tables were turned, keeping markets in
equilibrium.
But if one assumes a full-employment equilibrium, as described in textbooks, with the market working without friction, this penalty is ineffective.
As a result, the market will reach an
equilibrium
where unemployment exists, but wages do not drop.
This is, in short, the Shapiro-Stiglitz
equilibrium.
Not surprisingly, many Russians’ responses would strike an economist as failing to appreciate the market’s virtues as a mechanism to bring supply and demand into
equilibrium.
Soon, London was surrounded by leafy suburbs designed to keep high-quality housing and abundant green space in
equilibrium.
The goal must therefore be clarity and
equilibrium.
So, for 20 years it has seemed to me that Western Europe’s underlying political
equilibrium
– corporatist bargaining and ample social insurance, on the one hand, and tight monetary policies, on the other – must crack.
The
equilibrium
in voting rights between small and large member states was also secured by vesting exclusive authority to propose regulation in the Commission, which expresses the common interests of the Community.
China’s systemic importance with respect to emerging-market growth, its relative stability, and other emerging countries’ domestic policy responses suggest that the main effect of the Fed’s coming policy shift will be a new
equilibrium
with less distorted asset prices.
This should create opportunity for investors, especially if there is a downward overshoot as the new
equilibrium
emerges.
The European Central Bank has been pushing policy and market interest rates well below their
equilibrium
levels.
In order to find a new stable
equilibrium
in relations between Russia and the West, all parties must urgently make a good-faith effort to resolve it.
Unfortunately, studies of the economic impact of a -30% target have relied on traditional
equilibrium
models that neglect these multiplier effects.
Brazil is now trapped in a vicious circle, or what economists call a “bad equilibrium.”
The organization and allocation of power in the UN, the IMF, the World Bank, and the G7 meetings reflects a global
equilibrium
that disappeared long ago.
This no-arbitrage condition implies that, in equilibrium, all capital yields the same risk-adjusted return, which Piketty estimates historically at 4-5% per year.
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