Flows
in sentence
1766 examples of Flows in a sentence
America the RecklessMILAN – The world’s developed countries face growth and employment shortfalls, while developing countries are confronting huge challenges in adapting to increasingly volatile capital
flows
while adjusting their growth patterns to sustain economic development.
The idea, simply put, was that countries would benefit from embracing market-based pricing and deregulation at home, while fostering free trade and relatively open cross-border capital
flows.
They also underestimated the risks of financial contagion and surges in migration
flows.
Now, with the prospect of rising interest rates in the advanced countries causing a reversal of capital flows, the economic picture has come into full view – and it is not nearly as bright as it previously appeared.
The IMF’s Half StepBOSTON – “What used to be heresy is now endorsed as orthodox,” John Maynard Keynes remarked in 1944, after helping to convince world leaders that the newly established International Monetary Fund should allow the regulation of international financial
flows
to remain a core right of member states.
By the 1970’s, however, the IMF and Western powers began to dismantle the theory and practice of regulating global capital
flows.
More fundamentally, the Fund has accepted that there are risks as well as benefits to cross-border financial flows, particularly sharp inward surges followed by sudden stops, which can cause a great deal of economic instability.
Not surprisingly, given their decades of experience with the management and mismanagement of capital flows, emerging-market policymakers have been watching the IMF’s “rethink” on these issues very closely.
Unlike in the past, however, emerging and developing countries avoided the worst, precisely because they had learned to accumulate foreign reserves and regulate cross-border capital flows, and to ease such measures to prevent or mitigate sudden stops.
For example, the new welfare economics of capital controls views unstable capital
flows
as negative externalities on recipient countries, which implies that regulations on cross-border
flows
are the optimal tools to address market failures, improve market functioning, and enhance growth, not worsen it.
The IMF also fails to appreciate fully that capital
flows
should be regulated at “both ends,” or at least that advanced-country regulations will not make matters worse.
IMF research over the last year has outlined circumstances in which industrialized countries should also take part in regulating global capital
flows.
If China eases restrictions on cross-border capital flows, an unexpected shock could trigger large-scale capital flight, bringing down the entire financial system.
Given this, it is vital that China maintains controls over short-term cross-border capital
flows
in the foreseeable future.
The EU has, as a result, forfeited ultimate control of its own security, trade relations, and migrant
flows.
The trick, and our rational duty, is to embrace policies and to build institutions that are consistent with balanced trade and financial
flows.
Even more extraordinarily, when these new currencies emerged as the new claimants to reserve status, they had only recently become convertible for current-account transactions, and capital
flows
were still restricted.
Comparing the outcomes of these two simulations suggests that large export
flows
of Palestinian labor to Israel reduce the capacity of the Palestinian economy to export goods by putting upward pressure on wages, undermining competitiveness.
These policies would affect US economic growth, the budget deficit, national saving, and hence global trade and capital
flows.
Such a network would be based on multi-directional
flows
of renewable energy, supported by the digital revolution and the rise of big data.
Reorienting production to domestic consumption would be difficult under any circumstances; a downturn in global trade, increasingly volatile commodity prices, and falling aid and investment
flows
don’t help.
The main impact of Chinese tariffs on US soybeans will thus be the redirection of global soybean
flows.
Although this change is driven by Chinese domestic considerations, it could have a significant impact on global capital
flows
and interest rates.
As the Fed’s monetary-policy tightening becomes a reality, the World Bank predicts that capital
flows
to developing countries will fall from 4.6% of their GDP in 2013 to around 4% in 2016.
But, if long-term US interest rates rise too fast, or policy shifts are not communicated well enough, or markets become volatile, capital
flows
could quickly plummet – possibly by more than 50% for a few months.
A more balanced agenda would balance attempts to ease capital
flows
with efforts to facilitate the flow of labor, including unskilled labor.
Pushing countries to liberalize their capital markets and open them up to speculative capital
flows
is one example.
One route to enrichment is to privately appropriate the financial
flows
of state companies.
Recently, however, the environment for capital
flows
to emerging economies has deteriorated sharply.
Capital
flows
to emerging economies surged from 2002 to 2007, collapsed briefly during the 2008 global financial crisis, and then surged again from 2009 to 2011.
Back
Next
Related words
Capital
Financial
Countries
Trade
Global
Which
Investment
International
Their
Would
Markets
Economic
Emerging
Economies
World
Foreign
Could
Through
There
Growth