Flows
in sentence
1766 examples of Flows in a sentence
Perhaps the agreement will galvanize investment and knowledge
flows
across the Pacific, giving the world economy a much-needed boost.
One is reminded of Cockaigne, that mythical land where gold – the yellow oil –
flows
freely, or of El Dorado, that lost city of gold visited by Candide.
Evans depicts this policy, proposed by a panel of experts as balanced, as being “aimed at reducing both ‘push’ and ‘pull’ factors driving refugee flows.”
Pick any indicator: trade relative to global GDP, capital
flows
relative to the global capital stock, and so forth – all are rising.
These external effects are particularly consequential in the financial sector, owing to the potential for large and relatively abrupt changes in capital flows, asset prices, interest rates, credit availability, and exchange rates, all of which have powerful effects on output growth and employment.
Given an expanded mandate and a much larger balance sheet, the International Monetary Fund, with advance notification, could in principle reliably act to stabilize volatile international capital flows, buying time for more orderly domestic responses.
Open capital accounts may be replaced not by whimsical ad hoc interventions that heighten uncertainty and weaken confidence, but rather by predictable rules-based constraints on financial-capital
flows.
Finally, public purchases of domestic assets to stabilize asset prices and net capital
flows
will become increasingly common.
For example, Indonesia is seeking to establish a Green Corridor in Kalimantan (the Indonesian portion of the island of Borneo), where deforestation is not only fueling greenhouse-gas emissions, but also diminishing river flows, making it difficult in some months to transport goods by barge.
The export portion increased the most – by nearly six-fold, from 6% in 1980 to a pre-crisis peak of 35% in 2007 – as new capacity and infrastructure, low-cost labor, and accession to the World Trade Organization made China the world’s greatest beneficiary of accelerating globalization and surging trade
flows.
Remarkably, this reflects the emergence of new trade flows, not simply the redirection of existing ones.
But, in addition to requiring substantial investment, this approach raises serious questions, reflecting uncertainty about the effects that river
flows
can have on harbors, the environmental consequences of closing a bay, and the impact on shipping.
In 2014, as the Chinese economy slowed relative to the US, capital
flows
reversed, sending China’s overall balance of payments into deficit.
Nevertheless, the global gains from allowing freer
flows
of unskilled labor (even temporarily), let alone the benefits to developing countries, far outweigh the benefits from capital market liberalization.
One reason is that many modern financial
flows
do not play the useful role in capital allocation that economic theory assumes.
But in today’s world, net capital
flows
are often from relatively poor countries to rich countries.
Huge two-way gross capital
flows
are driven by transient changes in perception, with carry-trade opportunities (borrowing in low-yielding currencies to finance lending in high-yielding ones) replacing long-term capital investment.
And yet, despite the growing evidence to the contrary, the assumption that all capital
flows
are beneficial has proved remarkably resilient.
It is time to stop looking for these non-existent benefits, and to distinguish among different categories of capital
flows.
By contrast, short-term capital flows, particularly if provided by banks that are themselves relying on short-term funding, can create instability risks, while bringing few benefits.
China has not liberalized its capital account, but short-term inflows are now driving stronger upward pressure on the renminbi (and larger offsetting reserve accumulation by the People’s Bank of China) than can be explained by the current-account surplus and FDI
flows.
Such requirements would not prevent useful capital flows: global banking groups could invest equity in emerging markets and fund their subsidiaries’ balance sheets with long-term debt.
But, taken together, they can stem the volatility implied by short-term
flows
and help to smooth out domestic credit cycles.
But we need to be blunt: Free
flows
of short-term debt can result in capital misallocation and harmful instability.
Today’s low interest-rate environment is causing a flood of financial
flows
to emerging economies, raising the risk of inflation and asset bubbles.
In the last four years, inflows of private capital into frontier economies have been nearly 50% higher (relative to GDP) than
flows
into emerging market economies.
Thus, demanding that developing countries build the kind of institutions that will render capital
flows
safe not only puts the cart before the horse; it is also a fool's errand.
That is not because they fail to affect the quantity or composition of flows, but because such effects are quite small.
Indeed, the global economy has become so interconnected, and world markets so powerful, that there appears to be little scope for national policies to disrupt hyper-mobile capital
flows.
But the limited supply of higher-skill jobs in Italy, compared to other advanced EU countries, also affects migrant
flows.
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