Imbalances
in sentence
916 examples of Imbalances in a sentence
Artificially low exchange rates, restrictions on capital flows, and excessively large currency reserves all create global
imbalances.
Imbalances
between supply and demand have also fueled income inequality, by increasing the wage premia that those with the right skills can command.
The European Union’s Maastricht Treaty was designed to deal only with
imbalances
in the public sector; but, as it happened, the excesses in the banking sector were far worse.
China’s economy is still plagued by massive imbalances, and moving to a more flexible exchange-rate regime would serve as a safety valve and shock absorber.
The IMF reasonably predicts that, as the global economy normalizes over the longer term, China’s current-account surplus will again occupy the same weight in global
imbalances
as it did a few years ago (about 0.5% of global GDP).
Second, a better EMU needs a real single market, which is Europe’s best means of restoring growth and righting internal
imbalances.
But European institutions are now not only trying to repair the Pact, but are looking for ways to broaden its scope, making it possible to punish EU countries for “macroeconomic imbalances.”
The multilateral surveillance on global
imbalances
that the Fund launched in 2006 was an interesting step in this direction, but it has lacked commitment by the parties, as well as teeth.
One might expect that after a dangerous crisis rooted in growing structural
imbalances
and an unsustainable growth pattern on the demand side, there would be serious, ongoing debate about what is needed to restore long-term growth and productive job creation in the context of a rapidly evolving global economy.
Absent coordination, there is also a risk that monetary policies designed to promote growth (or at least not impede it) will lead to a return of financial-sector distortions and
imbalances.
Externally driven changes in financial variables have thus become a source of serious risk, especially in countries, like Argentina, with a history of economic mismanagement, large current account deficits, other financial imbalances, and a habit of pursuing too many objectives with too few instruments.
Deferred maintenance on income equality is one of many
imbalances
that built up in the US economy during the pre-crisis boom.
Those
imbalances
will remain until China completes its market transition.
This pact would monitor current-account
imbalances
and penalize excessive deficits or surpluses in the external account.
Moreover, there is a direct relationship between the EMU countries’ private-sector debt dynamics and their current-account
imbalances
within the euro zone.
After all, payment
imbalances
always have two sides, and the burden of adjustment should not be borne only by deficit countries.
It would also lead to broader economic-policy coordination, particularly with respect to wage-setting, because governments would be compelled to use national legislation and public-sector wage settlements to influence wage policy in such a way that
imbalances
among euro-zone countries are reduced.
Fair trade and the sharing of added value should replace free-trade
imbalances
and the export of unprocessed raw materials.
They understand that macroeconomic
imbalances
– and, in particular, inflation – are costly and lead to frustration.
A monetary union that cannot rely on exchange-rate adjustment or fiscal transfers to reduce labor-market
imbalances
requires mobility across national borders.
In fact, while reducing inflation is necessary to stabilize the economy, Argentina’s attempts to achieve rapid disinflation through overly ambitious targets will only exacerbate external
imbalances.
And with a large portion of the fiscal deficit financed by foreign-currency-denominated debt, the external
imbalances
increase the risk that public debt will become unsustainable in the future.
Amid these challenges, some critics have argued that the best way to address external
imbalances
is with a massive fiscal adjustment shock.
But it would also go some way toward redressing the growing external
imbalances
and help guard against any souring of market expectations.
The European Central Bank’s one-size-fits-all monetary policy created destabilizing
imbalances
in the eurozone.
If the euro generated these imbalances, the argument goes, country-level solutions are inadequate.
After all, the eurozone crisis was rooted in the emergence of
imbalances
generated by the euro’s introduction and, to a lesser extent, German reunification.
Moreover, the
imbalances
generated during the euro’s first decade are already being resolved.
Even without fiscal and political union, the European Commission has been empowered to supervise fiscal spending and other macroeconomic developments – such as wage growth and real-estate prices – that could cause
imbalances
to re-emerge.
While the previous model brought 30 years of success in terms of GDP growth, it generated considerable risks and
imbalances
– including environmental degradation, social inequities, excessive debt, industrial over-capacity, and a bloated state sector.
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