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Markets in sentence

9395 examples of Markets in a sentence

With the Fed deciding in their just-concluded April meeting, yet again, to hold rates, their dilemma is set only to intensify this year: normalize monetary policy in line with domestic fundamentals, or cede to the pressures of global financial markets.
And with China slowing, Europe mired in its own crisis, and the US walling itself in, the region’s growing markets have fresh appeal.
The Ideological Crisis of Western CapitalismNEW YORK – Just a few years ago, a powerful ideology – the belief in free and unfettered markets – brought the world to the brink of ruin.
Regrettably, the financial markets and right-wing economists have gotten the problem exactly backwards: they believe that austerity produces confidence, and that confidence will produce growth.
They cannot be used to intervene in foreign-exchange markets, or in other transactions with market participants.
Despite the trials and tribulations of the American economy, dollar securities remain the dominant form of reserves because of the unparalleled depth and liquidity of US markets.
Central banks can buy and sell dollar securities without moving those markets.
Since the 1970s, economists have been advising policymakers to de-emphasize the public sector, physical capital, and infrastructure, and to prioritize private markets, human capital (skills and training), and reforms in governance and institutions.
What is interesting is that while this decline is most marked in advanced economies, which are especially dependent on financial markets, it is visible in virtually all of the 95 countries that the authors studied.
Emerging Markets’ Shifting Bottom LineLONDON – One truism of the last three decades is that emerging markets are a leveraged play on global growth: they outperform when developed economies are growing, but they are susceptible to sharp downturns when global conditions are less favorable.
On one hand, many emerging economies have become more resilient and are no longer simply riding on developed markets’ coattails.
To be sure, the many risks facing emerging markets still call for a highly differentiated stance, as market illiquidity can magnify the impact of shocks on prices.
Yet, in addition to higher yields, three secular trends underpin the case for investing in emerging markets across global business cycles.
Second, most emerging markets have moved to floating exchange rates, which help to cushion growth from external shocks such as unanticipated monetary-policy tightening in the United States.
As such, domestic bond markets are better insulated, which in turn allows governments to make use of counter-cyclical fiscal policies to stabilize growth and service debts.
Low equilibrium interest rates are an important anchor for local and external debt prices in emerging markets.
So, while risks may be lower on average for emerging markets, this tail risk remains high.
Third, while the relative illiquidity of emerging markets has always demanded extra care, the liquidity risk premium for emerging-market assets may be more pro-cyclical than in the past.
Finally, the success of emerging markets in floating their exchange rates, combined with the low-growth environment, has indirectly led to a proliferation of nationalist, protectionist policies in the developed economies.
From an investment perspective, the good news is that the traditional perils of investing in emerging markets have been mitigated.
Many emerging markets have become less vulnerable to external financing shocks and the threat of sharp, unanticipated changes in developed-economy monetary policies.
Despite lower potential growth and equilibrium interest rates in developed economies, average absolute returns for emerging markets may be no lower than in the past.
For markets to work, for the appropriate signals for efficient resource allocation to be provided, investors must have as much information as possible.
What Levitt grasped - and what the Enron debacle shows so clearly - is that incentives matter, but that unfettered markets by themselves may not provide the right incentives.
Markets may not provide incentives for wealth creation; they may provide incentives for the kind of shenanigans Enron pursued.
Repeatedly, we have seen the consequences of the excesses of deregulation, of unfettered markets.
Central banks are better at restraining markets’ irrational exuberance in a bubble – restricting the availability of credit or raising interest rates to rein in the economy – than at promoting investment in a recession.
Meanwhile, as investors look outside the US for higher yield, the flood of money out of the dollar has bid up exchange rates in emerging markets around the world.
Emerging markets know this, and are upset – Brazil has vehemently expressed its concerns – not only about the increased value of their currency, but that the influx of money risks fueling asset bubbles or triggering inflation.
US policy is thus delivering a double whammy on competitive devaluation – weakening the dollar and forcing competitors to strengthen their currencies (though some are taking countermeasures, erecting barriers to short-term inflows and intervening more directly in foreign-exchange markets).
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