Flows
in sentence
1766 examples of Flows in a sentence
A reserve requirement on cross-border
flows
is one of them.
As national financial markets grew more intertwined, cross-border capital
flows
rose from $0.5 trillion in 1980 to a peak of $11.8 trillion in 2007.
Cross-border capital
flows
abruptly collapsed.
Should the world be worried by this decline in cross-border capital
flows
and slowdown in financing?
As we now know, much of the growth in financial assets prior to the crisis reflected leverage of the financial sector itself, and some of the growth in cross-border
flows
reflected governments tapping global capital pools to fund chronic budget deficits.
A powerful factor underlying the drop in cross-border capital
flows
is the dramatic reversal of European financial integration.
A crucial part of this agenda is the removal of constraints on foreign direct investment and foreign investor purchases of equities and bonds, which are far more stable types of capital
flows
than bank lending.
Policymakers must weigh the risks of volatility, exchange-rate pressures, and vulnerability to sudden reversals in capital
flows
against the benefits of wider access to credit and enhanced competition.
Financial
flows
have been accompanied by unprecedented financial integration, with most East European banks now controlled by Western parents.
It can also be done multilaterally, by raising the infrastructure investment
flows
from the World Bank and the regional development banks (including the Inter-American Development Bank, European Investment Bank, African Development Bank, and Asian Development Bank).
Regardless of how one categorizes Trump’s domestic agenda, it is clearly a response to a world in which a principle of openness – to foreign goods, capital, and people – coexists with a complex system for regulating these
flows.
Foreign goods are subject to national safety and product-information standards; capital
flows
are managed by controls on bank lending; and migration is limited by an array of checks and conditions.
Only then would they encourage and manage the inward capital
flows
needed to finance America’s twin fiscal and current-account deficits.
That agenda must include two issues of global monetary reform that remain unaddressed: coordinated global regulation of capital
flows
in the short term, and a long-term shift toward a new international monetary system based on a true global reserve currency (possibly based on the International Monetary Fund’s Special Drawing Rights).
The IMF/World Bank meetings in Tokyo on October 12-13 thus might be the ideal opportunity to begin broadening the international monetary agenda – by giving the green light to coordinated regulation of cross-border capital flows, and launching a discussion about the future of the international monetary system.
Arguably, the ideal of a well-defined and effective international monetary regime has become more difficult to realize as markets and capital
flows
have become vastly larger and more capricious.
Increased
flows
of goods, money, and knowledge around the world mean that foreign organizations and individuals become more influential, making it increasingly difficult for national governments manage their countries by themselves.
Nobody can predict the full effects of the biggest regime change in global economic management since the 1980s; but they will surely be negative for emerging economies and multinational companies, whose development models and business strategies have assumed free trade and open capital
flows.
They see little reason to believe that current asset values and trade
flows
are not sustainable.
The MDBs have been able to leverage large
flows
of private investment by mitigating risks and developing the capacity of domestic financial institutions.
Net capital
flows
to these economies declined by an estimated $122 billion, or about 9.6% year on year, in 2013, and fell sharply again during the first two months of this year.
And, in keeping with past experience, weak sentiment has reduced capital
flows
to emerging-market economies in general, especially those like Turkey, Indonesia, and Brazil that have large external financing needs or face upcoming elections with uncertain outcomes.
From 2002 to 2007, and again after the global financial crisis in 2008-2009, capital
flows
to emerging economies surged, as global investors searched for yield in conditions of slow growth and recession in developed countries, low interest rates, and ample liquidity.
Flows
of foreign direct investment (FDI), portfolio equity, and portfolio debt to emerging markets reached record highs, with portfolio debt, the most volatile and most sensitive to sudden shifts in investor sentiment, growing the fastest.
Unfortunately, several emerging economies – with the notable exception of China – relied on these abnormally large capital
flows
to finance domestic demand, and their current accounts slid into unsustainably large deficits.
With its excess of domestic saving and its maintenance of capital controls, China is comparatively insulated from volatility in short-term
flows.
Aggregate capital
flows
to emerging markets are likely to rebound later this year, but not all countries and all sectors will benefit.
Major emerging-market multinational corporations like Samsung, Tata, and Alibaba will also drive growth in their home countries and foster FDI
flows
among emerging markets.
Stronger interest by institutional investors in emerging-market assets should also boost future capital
flows.
The next several months are likely to be marked by volatility in capital
flows
to emerging economies, with significant pressure on vulnerable countries.
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