Imbalances
in sentence
916 examples of Imbalances in a sentence
The causes of the persistent
imbalances
should be addressed through a combined effort at fiscal consolidation and strengthened competitiveness, with structural reforms focusing on liberalizing markets and encouraging wage flexibility.
This saved Europe from overly large external
imbalances.
Now, without exchange-rate risk, interest-rate spreads based on debtor countries’ credit ratings are the only remaining defense against excessive capital movements and the resulting external
imbalances.
If investors are given unlimited protection, with no risk of bearing their share of possible losses, capital will continue to flow unimpeded from one corner of the eurozone to the other, prolonging these
imbalances.
By replacing the private credit that is being withdrawn with public credit, the external
imbalances
within the eurozone are being perpetuated.
That, however, is a precondition for reducing external
imbalances
and reliance on foreign credit.
Political assassinations and polarization in Tunisia, civil unrest and a military takeover in Egypt, terrorist attacks in Yemen, sectarian strife and an institutional vacuum in Libya, and civil war in Syria have contributed to a sharp fall in investment, tourism, exports, and GDP growth, aggravating macroeconomic
imbalances.
And imbalance-correcting policies – such as sharp tax increases, spending cuts, or currency devaluation – could backfire, fueling political unrest, delaying elections further, and exacerbating the very
imbalances
that they were meant to rectify.
It could well be that the likes of Trump find that they can stimulate the economy for quite a while before obvious
imbalances
emerge.
But it also carries serious risks, exemplified in the trade
imbalances
that emerged in the 1980s.
In order to correct these imbalances, the five countries signed the Plaza Accord, in which they agreed to intervene in currency markets to devalue the dollar.
Meanwhile, persistent global
imbalances
will continue to produce anxiety, especially for those whose lives depend on exchange rates.
Though Bush has long sought to blame others, it is clear that America’s unbridled consumption and inability to live within its means is the major cause of these
imbalances.
Unless that changes, global
imbalances
will continue to be a source of global instability, regardless of what China or Europe do.
For the last few years, some bearish economists have warned about America’s real estate boom, its consumption binge, global imbalances, and even unreasonably low risk premiums; but somehow America, and the world, has muddled through.
These
imbalances
develop as a result of a hands-off approach to capital-account management, based on the assumption that capital-market incentives and growth strategies are always aligned.
Financial investors understand that adequate returns may persist for a while, but that
imbalances
and risks may necessitate a hasty exit at any moment.
Economic recovery is undeniable, external
imbalances
have receded, and real-exchange-rate misalignments have diminished.
There will be no less than three different, partially overlapping, European procedures – for budgets, macroeconomic imbalances, and financial stability.
On top of this is the almost certain unwinding of global current-account
imbalances.
Of course, you can argue that post-crisis regulatory reform will eventually resolve the problem of periodic systemic risk, and that we will return to the more comfortable world of relatively stationary risk without periodic
imbalances.
The latter proposal is a non-starter, not only because of the budgetary sacrifices it would entail, but also because it would create significant military
imbalances
on the continent.
The best-known feature of China’s macroeconomic
imbalances
is heavy dependence on exports for growth, which is typically attributed to weak domestic demand: as a middle-income country, China lacks the purchasing power to consume the goods that it produces.
If this view is right, the solution is straightforward: China can correct its
imbalances
by increasing its citizens’ incomes (by cutting taxes, raising wages, or increasing social spending), so that they can consume more, thereby reducing the economy’s dependence on exports.
But, if all countries simultaneously attempt to improve their fiscal or external balances by cutting spending and raising taxes, all will fail, because each country’s austerity implies less demand for other countries’ output, in turn perpetuating both domestic and external
imbalances.
The resulting private-sector
imbalances
culminated in banking problems that were eventually transferred to sovereigns.
But it will also accelerate a solution to the eurozone’s main structural problem: its internal competitive imbalances, owing to wage-growth trends since the introduction of the euro that underpinned to Germany’s large trade surplus vis-a-vis the rest of the eurozone.
The CMIM could help East Asian countries to reduce their reliance on accumulating, as a form of self-insurance, costly reserves that fuel global
imbalances.
But the real danger – which even Hollande’s sternest critics may be underestimating – is not so much his individual policy failings (serious though they may be) as his approach to the twin challenges posed by France’s economic
imbalances
and the eurozone crisis.
Rampant illiteracy underpins other problems, including exploding populations, gender imbalances, and widespread poverty.
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