Markets
in sentence
9395 examples of Markets in a sentence
But modern production requires many inputs that
markets
do not provide.
And, as in the case of airlines, these inputs – rules, standards, certifications, infrastructure, schools and training centers, scientific labs, security services, among others – are deeply complementary to the ones that can be procured in
markets.
They interact in the most intricate ways with the activities that
markets
organize.
If, say, the BOJ moved to intervene outright in the exchange-rate
markets
to depreciate the yen, the odds that the People’s Bank of China and the Bank of Korea would opt for weaker currencies would increase.
But the global economy is slowing down, and financial
markets
went into a tailspin during the summer.
In normal times, capital
markets
perform this function smoothly; but these
markets
break down from time to time, owing to sudden large changes in perceptions about the riskiness of important asset classes.
Indeed, stock
markets
are tanking precisely because investors fear that ever-increasing risk premia in the eurozone’s peripheral countries will force them to stop consuming and investing, leading to lower German rates and thus inducing German households to reduce their consumption as well.
But Eurobonds would also create huge incentive problems, because debtors in the eurozone periphery would no longer have to fear any punishment by
markets
and might thus be induced to consume and invest too much.
In other words, the eurozone needs a European Monetary Fund that prevents this vicious circle from tightening by providing bridging finance when capital
markets
break down.
A third driver of recovery is the fact that banks and financial
markets
are now better insulated from the turmoil in Greece.
The ECB has also promised to support other countries’ bond
markets
in the event of a Greek accident.
A developed Africa can open up new export
markets
for the West’s saturated and stagnant economies, and help to revive global growth.
So far, confidence-building measures have been limited to financial markets, through public guarantees, liquidity support, and capital injections.
So far, the IMF has reacted with newfound vigor, establishing a much-needed short-term lending facility, which may well need to be expanded if emerging
markets
come under greater pressure.
They need to come to grips with the reality that national regulations and international
markets
are inextricably linked with – and in need of – each other.
And, third, exporters who wish to preserve their share in world
markets
– where prices are largely denominated in dollars – choose to keep their dollar prices stable, to avoid falling victim to idiosyncratic exchange-rate movements.
First, even if the trials proved favorable, Trovan was never intended for sale in Africa, but rather for the US and European
markets.
Up to now, the global financial crisis was historically remarkable in having no major impact on foreign-exchange
markets.
An effort to diversify by selling a particular asset would have such a large impact on
markets
that it would produce large losses for any central bank that tried it.
But America’s large fiscal deficit, along with continuing uncertainty about its financial markets, mean that the dollar is also potentially vulnerable.
More over, Japan in particular was not especially wealthy in an international comparison, and neither country had deep or well-developed capital
markets.
To my mind, the biggest failure of post-2008 economic policy has consisted in governments’ inability to find creative ways to write down unsustainable debts, for example in US mortgage markets, and in Europe’s periphery.
The Fed’s announcement in May that it might start tapering its long-term asset purchases surprised many central bankers, and triggered a sell-off from
markets
worldwide.
But some of the good news about America’s economy was bad news for financial markets, because investors considered the Fed’s potential policy tightening in response to such news to be more relevant than the news itself.
Then, last month, when the Fed postponed its withdrawal from so-called quantitative easing,
markets
quickly turned euphoric.
Monetary authorities have, in recent years, made the way they communicate – about their thinking and possible actions – their primary tool to guide
markets
and anchor expectations.
Because the voice of central banks has become so dominant in financial markets, price movements have come to reflect responses to their statements and actions, rather than to changing economic and financial realities.
For example, when policymakers promise to act if certain risks arise,
markets
inevitably discount the impact of such risks.
In May, Bernanke issued an unusually stern warning about excessive risk-taking in financial
markets.
A second consequence of the dominant role of central banks’ communications in financial
markets
is that it crowds out private sources of information, thereby depriving the monetary authorities themselves of an invaluable, independent view of trends that they need for sound policymaking.
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