Inflows
in sentence
636 examples of Inflows in a sentence
Instead, they took the
inflows
in the form of direct investment, equity, or debt denominated in local currency.
But then, yet a few decades later and reinforced by longer life expectancy and sharply lower birth rates, the system goes bust: tax
inflows
are insufficient to balance the outflows in the form of payments to retirees.
Jordan has reached its refugee-saturation point, and continued
inflows
are placing limited resources under ever-greater pressure.
Gross capital flows – the sum of
inflows
and outflows – are not just growing more slowly; they are down significantly in absolute terms from 2009 levels.
Unsustainable growth paths often end in a sudden stop of capital inflows, forcing countries to bring their spending back in line with production.
No recession, no meltdown will result, but a very serious jolt to world capital markets will take place, especially on the periphery, where the lack of stabilization and reform is covered up by capital
inflows.
And the substantial capital
inflows
since 2010 have caused sharp asset-price increases and swift credit expansion in countries ranging from Chile to Malaysia.
For example, capital
inflows
have boosted demand for local land and driven up its price.
Inflows
of foreign direct investment have dried up, and GDP growth rates have plummeted from as high as 7% in 2008 and 2009 to merely 2% in 2013.
Its stagnation was offset until early 1997 by strong
inflows
of capital from around the world.
But Kenya’s newfound oil stock will complicate these plans, given that massive capital
inflows
will cause Kenya’s overall price level to rise relative to that of its neighbors.
Furthermore, attracting more direct investment is crucial, given that capital inflows, while recovering, remain 30% below their pre-crisis level; with outflows exceeding inflows, Italy has become a net capital exporter.
But most have suffered from the opposite syndrome: excessive reliance on capital inflows, which, by spurring domestic credit and consumption, generate temporary growth.
The UK, unable to attract short-term capital inflows, was forced to borrow from the International Monetary Fund.
After all, capital
inflows
traditionally have been regarded as a positive transfer of savings from rich industrial countries to capital-scarce emerging markets.
Increasing capital
inflows
weigh heavily on import-substituting and export sectors, and may even wipe them out if the appreciation is substantive and protracted.
By artificially inflating assets and wealth in recipient countries, capital
inflows
induce emerging economies to over-consume, creating the same type of conditions that led to the recent crisis – this time in economies that are far less equipped than the US to deal with the risks.
Brazil has been aggressive in terms of capital restrictions, twice increasing its tax on financial
inflows.
These countries benefited the most from QE-induced capital inflows, and they were the first to come under pressure when it looked like the spigot was about to be turned off.
As the late Rudi Dornbusch (who preceded me as the author of this series of commentaries) used to say, unsustainable capital
inflows
always last much longer than economists, who tend to focus firmly on the fundamentals, believe possible.
So an end to capital
inflows
to the US should not set off the worries about solvency and the derangement of finance that generated recessions in Mexico and East Asia and Argentina's deep depression.
So why, in the absence of solvency fears, do capital
inflows
to America continue?
Investors outside the US can see the magnitude of the trade deficit, calculate the likely decline in the dollar required to eliminate it, and recognize that the interest rate and equity return differentials from investing in the US are insufficient to compensate for the risk that next month will be when capital
inflows
into America start to fall.
Even in the wake of the global economic crisis, Colombia’s economy has been growing at an average rate of close to 5%, while benefiting from unprecedented
inflows
of foreign investment.
Faced with
inflows
of huge numbers of refugees from the Middle East and Africa –
inflows
that exceed many countries’ absorptive capacity – the EU may need to modify the free movement of people for a period of time.
There have been other serious problems, too, like over-reliance on speculative short-term capital
inflows
to finance a growing current-account deficit, and inadequate attention to boosting productive employment and promoting wage-led growth possibilities.
Likewise, economists have long noted that for countries gorging on capital inflows, there is a big difference between debt instruments and equity-like investments, including both stocks and foreign direct investment.
But it proved to be a great disappointment in terms of foreign investment
inflows
and economic growth, which has averaged 2.6% per year over the last two decades – slower than Peru, Chile, Colombia, Brazil, and Uruguay.
Policymakers in many emerging-market countries worry that surging capital
inflows
will drive up the value of the local currency, destabilize financial markets, and fuel economic overheating.
Clearly, we need to get a better handle on what is driving these capital
inflows.
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