Markets
in sentence
9395 examples of Markets in a sentence
During the Great Depression, similar arguments were heard: government need not do anything, because
markets
would restore the economy to full employment in the long run .
Markets
are not self-correcting in the relevant time frame.
No government can sit idly by as a country goes into recession or depression, even when caused by the excessive greed of bankers or misjudgment of risks by security
markets
and rating agencies.
The right often traces its intellectual parentage to Adam Smith, but while Smith recognized the power of markets, he also recognized their limits.
The public rewards democratic governments for dealing with the downside risk caused by competitive
markets
– whether by spending to create jobs or by rescuing banks that have dodgy securities on their balance sheets.
Democracies are necessarily softhearted, whereas
markets
are not; government action has expanded to fill the gap.
One is that they intervene directly in markets, both domestic and across borders, to reduce competition and volatility while they rebuild their buffering capacity.
One factor diminishing the likelihood of governments intervening more directly in
markets
is that the recent crisis seems to have discredited government as much as it discredited the financial sector.
As economic collapse caused the public to lose faith in the private sector and markets, faith in government grew.
Movements like the Tea Party have thus tended keep in check those who, after a crisis of the sort that America has had, typically want more government action, including curbing
markets
and competition.
Such measures would only exacerbate deflation in these countries, which are the most important
markets
for German exports.
That experience was marked by the attempt to use a fixed exchange-rate regime as the main policy instrument to control inflation; that attempt’s colossal failure; and the shift, over the last decade, to more flexible regimes, freeing the exchange rate from playing a central role in controlling inflation, but not necessarily allowing a pure float in world currency
markets.
But what most characterizes Latin America’s experience is that, despite publicly preaching the virtues of a floating rate, the authorities actively intervene in currency markets, this time in different and creative ways.
Even if this was due to temporary factors, including supply disruptions from the Japanese earthquake, labor and housing
markets
are still on the ropes in the US and some parts of Europe.
Emerging
markets
are leading the recovery, but a number of them must contend with the risks of overheating and growing financial imbalances.
In emerging
markets
and low-income economies, the challenge is to avoid overheating, contain financial risks, and address pressing social spending needs, while not compromising sustainability.
And yet central bankers in the very emerging
markets
that the IMF is supposedly protecting have been sending an equally forceful message: Get on with it; the uncertainty is killing us.
Let’s suppose the Fed raises interest rates to 0.25 basis points at its December meeting, trying its best to send a soothing message to
markets.
It can quickly scale up and make large investments in new
markets
– including for education – without bureaucratic delays, while building on proven models and international experience.
In the meantime, Latin America’s economies will continue to benefit from the world boom in commodity markets, elections will remain normal, and life will go on in the political middle of the road.
New production capacity has now been created and new
markets
conquered, but the catching-up process is still far from complete.
The problem is that the Fed’s liquidity injections are not creating credit for the real economy, but rather boosting leverage and risk-taking in financial
markets.
The issuance of risky junk bonds under loose covenants and with excessively low interest rates is increasing; the stock market is reaching new highs, despite the growth slowdown; and money is flowing to high-yielding emerging
markets.
It may be too soon to say that many risky assets have reached bubble levels, and that leverage and risk-taking in financial
markets
is becoming excessive.
Rapid normalization – like that undertaken in the space of a year in 1994 – would crash asset
markets
and risk leading to a hard economic landing.
But if financial
markets
are already frothy now, consider how frothy they will be in 2015, when the Fed starts tightening, and in 2017 (if not later), when the Fed finishes tightening?
Last time, interest rates were too low for too long (2001-2004), and the subsequent rate normalization was too slow, inflating huge bubbles in credit, housing, and equity
markets.
All wanted to integrate their economies and labor
markets
with Europe, and, after the Brexit vote, Britain was widely expected to try to negotiate a Norwegian-style EEA arrangement, rather than the rupture proposed by May.
Samuel Morley of the UN’s Economic Commission for Latin America and the Caribbean put together an index that graded reforms aimed at economic deregulation, trade liberalization, and opening up financial
markets.
We cannot base our actions solely on commercial will, because that limits us to operating strictly at the whims of international
markets.
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