Flows
in sentence
1766 examples of Flows in a sentence
Pessimists claim that in the absence of well developed local financial markets and a global lender of last resort, emerging economies remain vulnerable to a sudden stop in capital
flows.
So what could happen when those
flows
are reversed?
Land holdings can, in turn, be used as collateral, stimulating further credit
flows
and triggering successive rounds of asset-price appreciation.
When capital
flows
stop, this entire process unwinds, inflicting much pain.
The drop in the price of land (and of other assets) impairs their role as collateral, causing domestic credit
flows
to suffer.
Such crunches, history shows, are an omnipresent feature of the aftermath of sudden stops in capital
flows.
Whatever the precise amount, it is safe to say that the numbers in question are huge – larger than, say, foreign-aid
flows
or any reasonable assessment of the gains from completing the Doha Round of trade negotiations.
In a world of free capital flows, such a regime is a ticking bomb.
But, of course, Western elites also benefit from higher salaries and increased profits when intellectual and physical capital
flows
to low-wage countries with weaker labor protections.
Not surprisingly, the value of wealth rose much faster than that of income during this period, because the value of the assets that comprise wealth amounts essentially to the net present value of their expected future cash flows, discounted at the current interest rate.
They explained that until recently this was a perennial river – one that
flows
throughout the year – but now the river stops flowing during the dry season.
By contrast, when it comes to financial deregulation and the liberalization of international capital flows, there are clear equity-efficiency tradeoffs: they boost growth, but they also tend to increase inequality.
More generally, countries need to avail themselves of the tools at their disposal to manage cross-border capital flows, with the objective of mitigating the risk of financial crises and their associated fiscal costs.
As the McKinsey Global Institute noted, with the exception of cross-border finance, global
flows
are just as robust now as they were before the crisis.
Capital
flows
among emerging economies have doubled in just ten years, and more than one billion people crossed borders in 2009, over five times the figure in 1980.
But, while the resulting surge in capital
flows
to emerging markets stimulated economic growth, it also inflated asset bubbles.
They will also confront a rapidly changing external environment and a growing need to manage capital
flows
more effectively, which will require much closer coordination between central banks and financial regulators.
Aside from their strategic minuet in Asia, China and the United States are engaged in a cyber-security battle that is already starting to affect
flows
of goods, investment, and technology.
The cross-border
flows
of goods, information, people, and capital that are its lifeblood rely on a threshold level of safety, stability, and predictability.
In terms of priorities, it is arguably more important for G-20 governments to strengthen the core systems that enable global
flows
than it is to address strictly economic issues.
Ineffective regulation in areas like food safety, infectious diseases, cyber security, energy markets, and air safety, combined with the inability to manage regional tensions and conflict, will undermine global
flows
and reduce prosperity everywhere.
Contrary to glib assumptions, globalization of capital, trade, and migration
flows
is not “good for everyone.”
Unless this increase is accompanied by rising prosperity and rapidly expanding job opportunities, large and continuous migration
flows
across the Mediterranean will become inevitable.
The whole of Europe therefore faces two enormous challenges: helping to foster economic development in Africa and the Middle East, and coping as best as possible with the significant migration
flows
which are bound to occur, with significant adverse consequences for some citizens.
And it was after the Communists crushed the pro-democracy movement in 1989 that the US helped to turn China into an export juggernaut that has accumulated massive trade surpluses and become the principal source of capital
flows
to the US.
It is time for a new and more responsible approach to managing global capital
flows.
Most important, however, has been what looks, from today’s perspective, like a permanent collapse in the risk-bearing capacity of the private marketplace, and a permanent and large increase in the perceived riskiness of financial assets worldwide – and of the businesses whose cash
flows
underpin them.
They get the fresh air (foreign investment and technology) while keeping out the harmful elements (volatile capital
flows
and disruptive imports).
When some want to reduce their surpluses without a corresponding desire by others to reduce deficits, the result is a “sudden stop” in capital
flows
and financial crisis.
Economically, border controls act just like taxes; they distort activity, by increasing transaction costs and reducing cross-border
flows
of goods and services.
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