Fundamentals
in sentence
405 examples of Fundamentals in a sentence
- Confidence is important, but it must rest on sound
fundamentals.
The idea, in Tobin’s words, was to “throw sand in the wheels” of financial markets to slow them down and make them hew more closely to economic
fundamentals.
These countries have flexible exchange rates, relatively open capital accounts, good fundamentals, and “safe haven” currencies.
A second reason to fear a double-dip recession concerns the fact that oil, energy, and food prices may be rising faster than economic
fundamentals
warrant, and could be driven higher by the wall of liquidity chasing assets, as well as by speculative demand.
He was arguing as Wall Street went into meltdown that the American economy’s
fundamentals
were still strong.
The attraction of the RMB should come from China’s strong economic
fundamentals
and faith in its economy.
As the Nobel laureate Robert J. Shiller has shown, optimism can evolve into “irrational exuberance,” whereby investors take asset valuations to levels that are divorced from economic
fundamentals.
Only with such an approach can Moon hope to boost the economy’s growth potential, create decent jobs, reinforce the economy’s fundamentals, and bolster resilience to external downside risks.
Adding to these fundamentals, populist rhetoric about introducing a quasi-currency or small-denomination IOUs (presumably to finance ambitious spending plans and larger budget deficits), and about not honoring the Bank of Italy’s debt, adds fuel to the financial fire.
These measures contributed to the improved economic
fundamentals
that helped limit the impact of the global financial crisis.
But can a few dozen basis points in (poorly measured) long-term inflation expectations justify the need for massive quantitative easing and a policy rate 250 points lower than it was at a time of weaker market
fundamentals?
None of this can be explained by economic
fundamentals.
Economic
fundamentals
have fallen by the wayside.
Second, caution has costs: financial openness may itself catalyze improvements in
fundamentals
that enhance the benefits of globalization.
This is the case for countries with both relatively weak and strong
fundamentals.
But a new issue risks bringing about a similarly problematic outcome: By repeatedly repressing financial-market volatility over the last few years, central-bank policies have inadvertently encouraged excessive risk-taking, which has pushed many financial-asset prices higher than economic
fundamentals
warrant.
To the extent that continued currency-market volatility spills over into other markets – and it will – the imperative for stronger economic
fundamentals
to validate asset prices will intensify.
They can overextend their finances, fall victim to promotions, invest carelessly in the wrong assets, and direct production into regions and activities on the basis of momentary excitement rather than calculation of economic
fundamentals.
This process means that ratings are often backward-looking, downgrades occur too late, and countries are typically rerated based on when analysts visit, rather than when
fundamentals
change.
With the United States now in recession (and the possibility of a deep recession not that remote), it is striking how positive ECB officials sound about the European economy: Europe’s “economic
fundamentals
are sound,” the economy is “robust,” economic performance is “just below potential,” and so on.
Nonetheless, the real issue is that the Fed’s last-minute change of heart does not significantly alter the main challenge that the highly qualified Yellen will face: persistently weak economic
fundamentals
and doubts about the continued effectiveness of the Fed’s policy tools.
You might also want to rethink Eugene Fama’s efficient markets hypothesis, according to which prices of financial assets always reflect all available information about economic
fundamentals.
It stated that interventions aimed at objectives inconsistent with economic
fundamentals
were futile and counter-productive.
Before 1985, by contrast, financial markets were overwhelmingly dominated by the herd behavior of short-term traders, people who sought not to identify fundamentals, but to predict what average opinion would expect average opinion to be, and to predict it before average opinion did.
Then there was “forward guidance” (FG), the commitment to keep policy rates at zero for longer than economic
fundamentals
justified, thereby further reducing shorter-term interest rates.
There are other notable, if less consequential,
fundamentals
in the mix.
This defies the
fundamentals
of science, in which only data, principles, and mathematics – not ex cathedra arguments – are relevant.
The economic
fundamentals
are far from stable, while the reduced financial tension is the fortunate outcome of an expectation game.
Every soft number — and there have plenty lately — is given a positive spin (“euro-zone economic
fundamentals
remain strong” or “the economy remains robust”) -- and the media goes along with the deception.
Regardless of its fundamentals, a German bank would be considered safer than an Italian one, because the German government’s implicit guarantee is much more valuable than the Italian government’s.
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