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Inflows in sentence

636 examples of Inflows in a sentence

If capital controls can be easily evaded – say, by manipulating the timing of transactions or through mis-invoicing of trade flows – then there will be little effect on the actual volume of capital inflows.
If, on the other hand, market participants do bear significant costs – either because of the taxes they pay or because of the expenses they incur to evade them – the controls will be effective in restraining inflows.
However, the international outcry obscured an unintended but perhaps more troubling feature of China’s exchange-rate policy: the tendency for sporadic renminbi appreciation (even small movements) to trigger speculative inflows of “hot” money.
One approach might be simply to let the renminbi float without official intervention or controls on capital inflows.
Again, this would inevitably trigger hot-money inflows, with speculators taking advantage of the spread between Chinese interest rates and the near-zero, short-term rates in developed economies, thereby driving up the renminbi further (and creating yet more opportunities for speculation).
Even without hot-money inflows, the renminbi’s exchange rate would face upward pressure, owing to the absence of corresponding outflows to finance the trade (saving) surplus.
As an immature international creditor, China is unable to balance the inflows by making renminbi loans abroad.
Thus, China must maintain controls on inflows of financial capital for the time being, with the PBOC intervening to stabilize the renminbi/dollar exchange rate.
Others cite the so-called “capital glut” – large inflows of external financing from China and much of the developing world.
If freedom of movement within Europe is to be maintained – and if high inflows of non-EU citizens continue – European welfare states face a stark choice: adjust or collapse.
In fact, our projections show that gross (or total) capital inflows to emerging markets will increase from US$400-500 billion just before the Asian crisis of 1997 to US$800-900 billion both in 2007 and 2008.
These inflows are expected to top US$1 trillion in the not-so-distant future.
While this has become more difficult, countries can still choose – at least to some degree – how open they are to capital inflows.
But raising interest rates unilaterally carries serious risks, because in a demand-constrained environment, higher interest rates attract capital inflows, thereby driving up the exchange rate and undermining growth in the tradable part of the economy.
Growth that relies on capital inflows or commodity booms tends to be short-lived.
In most European countries, the political backlash has been sharp, owing to the rapid rate of the inflows (more than a million people in the past year) and the Muslim background of many of the newcomers.
Egypt’s foreign-investment inflows have also dried up, falling from $6.4 billion in 2010 to a mere $500 million in 2011.
With higher US market interest rates attracting additional capital inflows and pushing the dollar even higher, the currency’s revaluation would appear to be just what the doctor ordered when it comes to catalyzing a long-awaited global rebalancing – one that promotes stronger growth and mitigates deflation risk in Europe and Japan.
Indeed, the accession countries that have not implemented a currency board have seen their budget deficits surge--exceeding 9% of GDP in Hungary in 2002 and more than 5% in Poland, the Czech Republic, and Slovakia--while large capital inflows have kept their currencies under strong pressure to appreciate.
The populist response relies on the bizarre but evidently resonant argument that Europe – or, more specifically, Germany – is encouraging the refugee inflows.
With the PBOC unable to sterilize the inflows, upward pressure on the renminbi’s exchange rate would threaten competitiveness.
At the same time, one need only recall the damage that unregulated carry trades wrought on Asian economies in the 1990’s to understand why China must erect barriers to protect its domestic markets from inflows of hot money.
And it paid tribute to the ability of US markets and financial firms to create innovative instruments to “attract and sustain high levels of capital inflows.”
The collateral damage would include a fall in commodity prices, reduced aggregate demand, lower capital inflows, and fiscal retrenchment.
Moderating domestic demand requires, first and foremost, fiscal tightening, because further increases in interest rates, which are already relatively high, would only fuel further capital inflows and put even more upward pressure on the real, which is already over-valued.
At the same time, China’s barriers to foreign capital inflows to services remain high.
But the deeper reason is the correct perception that the resulting current-account deficits are not “benign” when they are being financed by inflows of short-term capital, or “hot” money.
The financial markets’ recent darling is Brazil, which grew at a breakneck 7.5% pace in 2010, fueled by almost $100 billion in capital inflows.
As I noted in a previous commentary, Iceland, where the financial crisis dates to 2007, has already been dealing with a fresh wave of capital inflows for some time, leading to concerns about potential overheating.
One could trace its beginnings to the 1970’s, when recycled petrodollars fueled large capital inflows to developing nations.
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