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Flows in sentence

1766 examples of Flows in a sentence

In 2011, growing anxiety about a possible financial crisis in Europe interrupted these flows, but they rebounded in 2012.
By the end of that year, flows of foreign direct investment (FDI), portfolio equity, and portfolio debt to emerging economies had reached record highs.
FDI flows, which are less volatile than other capital flows, remained by far the largest, accounting for nearly 60% of emerging markets’ total inflows in 2012.
But, from 2009 to 2012, portfolio bond flows, which are sensitive to sudden shifts in investor sentiment, were the most rapidly growing component of inflows.
Forthcoming research by the McKinsey Global Institute (MGI) estimates that emerging markets accounted for about 15% of all cross-border portfolio bond flows during this period – an all-time high.
According to economic theory, the major determinants of capital flows to emerging-market economies are real growth-rate differentials, interest-rate differentials, and global risk aversion.
Faster growth and higher interest rates in emerging markets relative to those in developed economies encourage capital flows to the former, while an increase in global risk aversion – for example, during the eurozone crisis in 2011 – discourages them.
The Fed study finds that emerging economies’ total net capital inflows have been higher than expected in the post-crisis period, driven by larger-than-predicted net portfolio inflows (mainly bond flows).
And, since the crisis, portfolio flows have been more sensitive to both interest-rate differentials and global risk aversion.
The recent decline in capital flows to emerging markets is also consistent with theory.
As the 2008 and 2011 experiences demonstrate, heightened risk aversion among global investors reduces capital flows to emerging markets, even when they are not the source of risk.
The losses in emerging-market currencies and assets in recent months are a harsh reminder of an inconvenient truth: when the Fed tightens monetary policy to manage macroeconomic conditions in the US, there are large unintended spillover effects on capital flows to emerging markets.
One set of complications arises from external global imbalances, distortions, and heightened volatility in capital flows, exchange rates, and relative prices.
After all, the developed economies have not previously engaged in the kind of unconventional monetary policy seen in recent years – a period characterized by ultra-low interest rates and ultra-fast cross-border capital flows.
Slower growth in the advanced economies has also weakened trade flows, adding to the headwinds.
In fact, the decline in prices, together with the reversal of capital flows, exposed weaknesses in the underlying growth patterns that had previously been masked by favorable conditions.
Innovative financing mechanisms offer the means to tap incrementally into global financial flows without disrupting economic activity.
Digital Globalization and the Developing WorldBERKELEY – Globalization is entering a new era, defined not only by cross-border flows of goods and capital, but also, and increasingly, by flows of data and information.
Propelled by demand and outsourcing from advanced economies, emerging markets won a growing share of the soaring trade in goods; by 2014, they accounted for more than half of global trade flows.
While global goods trade has stalled and cross-border financial flows have fallen sharply since 2007, flows of digital information have surged: Cross-border bandwidth use has grown 45-fold over the past decade, circulating ideas, intellectual content, and innovation around the world.
New research from the McKinsey Global Institute (MGI) finds that cross-border flows of goods, services, finance, people, and data during this period increased world GDP by roughly 10% – roughly an additional $7.8 trillion in 2014 alone.
Data flows accounted for an estimated $2.8 trillion of this gain, exerting a larger impact than global goods trade – a remarkable finding, given that the world’s trade networks developed over centuries while cross-border data flows were nascent just 15 years ago.
These flows are disproportionately concentrated among a small set of countries, including the US, the United Kingdom, Germany, and Singapore, with huge gaps between the leaders and laggards.
Yet digital flows offer developing countries new ways of engaging with the global economy.
Countries on the periphery of the network of global data flows can benefit more than countries in the center.
Governments must consider these trade-offs carefully, and develop ways to support those who are harmed by global flows, giving them paths to new roles and livelihoods.
Multinational digital firms, mostly based in the US, have pushed for globally harmonized rules that would provide predictability and limit the space for national governments to intervene in digital flows.
That may change, however, if the world’s three major economies – the US, the EU, and China – were ever to harmonize their approach to regulating digital trade and global data flows.
For example, forty years ago, when fear of nuclear proliferation was new, my teacher and friend Vassili Leontief, who invented the macroeconomic table of inter-industrial flows, argued that the best indicator of an illegal arms program is massive electricity consumption.
When US interest rates rise, more investment capital flows in, driving up demand for the dollar.
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