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Equilibrium in sentence

394 examples of Equilibrium in a sentence

The result is that economies are stuck in a so-called Nash equilibrium, in which no participant can gain through unilateral action.
As long as the eurozone establishes a kind of wary equilibrium, with the weaker economies stabilizing at low growth rates, current policies are unlikely to change.
All of these forces increase the excess supply of unskilled labor in the West, thereby reducing the equilibrium wage rate.
Movement towards a new equilibrium will last decades.
Income from labor freely adjusts to forge an equilibrium between supply and demand.
Consumers in advanced economies benefit from the reduction in prices of traded goods; but low and even some medium-skill workers lose income as their equilibrium wages fall and their jobs are threatened.
Employment cannot be sustained above its equilibrium path by inflating effective demand.
This is what economists call a pooling equilibrium.
A pooling equilibrium can be disrupted if reformist politicians can “signal” to voters his or her “true type.”
Modi’s victory and Abe’s increased ability to stand by Japan’s allies can help to forge deeper bilateral ties and, if properly understood by China, foster a greater strategic equilibrium in the region.
Although the theory of optimal income taxation directly addresses the tradeoffs between efficiency incentives and distributional consequences, the appropriate equilibrium remains a long way off.
Second, inside the US, the return of the dollar toward its equilibrium value is carrying with it import price inflation.
Of course, global savings and consumption patterns have undergone significant change since the financial crisis, with both the West and China trying to restore internal equilibrium.
And that is precisely the goal of negative interest rates: In a world where supply outstrips demand and too much saving chases too few productive investments, the equilibrium interest rate is low, if not negative.
Most importantly, too many government and household balance sheets remain out of equilibrium in an excessively asset-based global economy.
This is because monetary-policy ease is measured in terms of the difference between the actual rate and the equilibrium rate.
The current low policy rates maintained by the US Federal Reserve, the European Central Bank, and the Bank of Japan may not look so low if the equilibrium rate is actually low.
The financial industry complains that efforts to force greater equity funding would curtail lending, but this is just nonsense in a general equilibrium setting.
So the continued provision of helicopter money after an economy has returned to normal capacity utilization – the point at which demand and supply are in equilibrium – will cause inflation to take off.
It was a happy equilibrium that could last indefinitely.
China’s mad rush toward fuqiang (wealth and power) has given it little chance to develop all the compensatory institutions that any truly developed, not to say enlightened, society needs to achieve equilibrium and social health.
Prompted by capital flows to low-wage countries, specialization, outsourcing, and even immigration, the equilibrium price of unskilled labor has fallen throughout the western countries.
In showing how economics could remain stuck in an “underemployment” equilibrium, Keynes challenged the central idea of the orthodox economics of his day: that markets for all commodities, including labor, are simultaneously cleared by prices.
Central bankers adjust interest rates to secure a balance between total demand and supply, because, thanks to Keynes, it is known that equilibrium might not occur automatically.
Having said this, Keynes’s theory of “underemployment” equilibrium is no longer accepted by most economists and policymakers.
The “natural” interest – what would be ground out by the Walrasian system of general equilibrium equations – is actually lower than what current monetary policy is producing.
On the contrary, compared to what is needed (given the current state of the economy) or to what a free-market, flexible-price economy in proper equilibrium would deliver, interest rates are too high and inflation is too low.
Either the eurozone moves toward a different equilibrium – greater economic, fiscal, and political integration, with policies that restore growth and competitiveness, including orderly debt restructurings and a weaker euro – or it will end up with disorderly defaults, banking crises, and eventually a break-up of the monetary union.
Not only did the supply siders’ self-funding promises go unfulfilled; they also marked the beginning of the end for America’s balance-of-payments equilibrium.
At that time, German Chancellor Helmut Kohl wisely concluded that German economic dominance of Europe was not conducive to a stable equilibrium, and that a better plan for the future was to build on Germany’s weight and influence to create a permanent common monetary order.
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