Equilibrium
in sentence
394 examples of Equilibrium in a sentence
Observers debate whether it will eventually reach a new
equilibrium.
Pessimistic observers foresee a continual decline of freedom rather than a liberal
equilibrium.
Egypt, meanwhile, is finding its own equilibrium, both domestically, drafting a new constitution, and in terms of foreign policy.
Even if its normalization policy is successful in bringing interest rates back to an
equilibrium
level, that level will be no higher than 3%.
It is worth remembering that in the Fed’s previous two tightening cycles, the
equilibrium
rate was 6.5% and 5.25%, respectively.
As the last few monetary-policy cycles have shown, even if the Fed can get the
equilibrium
rate back to 3% before the next recession hits, it still will not have enough room to maneuver effectively.
The Fed and other central banks are informally exploring this option now, because it could increase the
equilibrium
interest rate to 5-6%, and reduce the risk of hitting the zero lower bound in another recession.
This fact – a defect inherent in the system – contradicts the generally accepted theory that financial markets tend towards
equilibrium
and deviations from the
equilibrium
occur either in a random manner or are caused by some sudden external event to which markets have difficulty in adjusting.ampnbsp;
I contend that financial markets are always reflexive and on occasion they can veer quite far away from the so-called equilibrium.ampnbsp;
That creed led to deregulation, globalization, and financial innovations based on the false assumption that markets tend towards equilibrium.ampnbsp;
The search for the optimum
equilibrium
is a never-ending process of trial and error.
I have long defaulted to watching the five-year forward price for lack of a more fundamentals-based approach to thinking about the
equilibrium
price of oil.
They must come up with a credible method for estimating the underlying
equilibrium
price of oil.
Then, as soon as the oil price exceeds two standard deviations of that equilibrium, they should start to ignore the fashionable advice of colleagues, analysts, and industry insiders.
Gradually the impact of the shock is transferred to output and domestic prices, and the exchange rate moves towards a new
equilibrium.
But I have not seen Summers lay out a fully articulated dynamic general
equilibrium
model that supports his advice.
This theory integrates Keynesian economics with general
equilibrium
theory in a new way.
In a fully articulated model with multiple possible
equilibrium
unemployment rates, one must explain how an
equilibrium
is selected.
The renowned American economist Irving Fisher actually built an elaborate hydraulic machine with pumps and levers, allowing him to demonstrate visually how
equilibrium
prices in the market adjust in response to changes in supply or demand.
The efficient state of the economy, general equilibrium, is a solution to a system of simultaneous equations.
Deviations from
equilibrium
are “frictions,” mere “bumps in the road”; barring them, outcomes are pre-determined and optimal.
For Hayek, the magic of the market is not that it grinds out a system of general equilibrium, but that it coordinates the disparate plans of countless individuals in a world of dispersed knowledge.
The late Rudiger Dornbusch - who used to write this column - used to say that unsustainable situations lasted longer than economists who believed in market rationality and
equilibrium
could imagine possible.
The tension between reason and religion since the sixteenth century has been "welcome and beneficial for both" and opened the way for the eventual reconciliation or
equilibrium
between the two, he explains.
Their idea of a cooperative
equilibrium
is the European Union’s 2013 “fiscal compact,” under which euro members agreed yet again to rules for limiting their budget deficits.
Given the protections afforded to acquired rights, the process of rooting out economic distortions and restoring Brazil’s finances to a stable
equilibrium
will require a lengthy process of constitutional reform.
The economic
equilibrium
we live should be regarded, above all, as a phishing equilibrium, in which small-time individual dishonesty can morph into something more systemically important when it is carried on by business organizations under intense competitive pressure.
In the real world, there is no mechanism to ensure such an
equilibrium
on a continuous basis; national economic policies can be (and often are) mutually incompatible.
As for the exchange rate, PPP is only one of many ways to calculate its
equilibrium
level.
What Europe is trying to do in Portugal and Greece is reminiscent of central banks’ futile efforts in past decades to keep exchange rates away from the market
equilibrium
price level.
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