Outflows
in sentence
228 examples of Outflows in a sentence
A gradual depreciation would create expectations of further exchange-rate weakening, thereby fueling capital
outflows
and undermining companies’ willingness to use renminbi in exports and imports.
But the unprecedented speed and scale of China’s monetary expansion remain a concern, given that it could still trigger high inflation and lead to asset-price bubbles, debt growth, and capital
outflows.
The effectiveness of monetary expansion could be enhanced in advanced countries by reducing the leakages generated by the carry trade and other short-term capital
outflows.
Then there is the question of how emerging-market policymakers respond to the turbulence: Will they raise rates to stem inflationary depreciation and capital outflows, or will they cut rates to boost flagging GDP growth, thus increasing the risk of inflation and of a sudden capital-flow reversal?
Deposit
outflows
will cease.
The emerging economies hit hardest by short-term capital
outflows
and equity-market declines during the last year had experienced large appreciations in their real exchange rates and large deteriorations in their current-account positions.
Now Russia is teetering on the brink of recession and expects capital
outflows
to top $70 billion during the first quarter of this year, exceeding the
outflows
for all of 2013.
With a fast-rising RMB, net capital
outflows
will increase, which is what Japan experienced after the Plaza Accord of 1985 pushed the yen upward.
The data bear this out: FDI
outflows
more than doubled in 2008, to $52 billion, from $23 billion in 2007, and rose even further in 2009 (when world FDI flows collapsed by about 50%, owing to the Western financial and economic crisis), before reaching $68 billion in 2010.
If the pre-war mortality rate was too low and/or if the population estimates were too high – because, for example, they ignored
outflows
of refugees from Iraq – the resulting estimates of the number of Iraqi “excess deaths” would be inflated.
Emerging countries are inundated with capital inflows one day, and faced with abrupt and equally destabilizing
outflows
the next.
The goal should be to make self-insurance unnecessary by guaranteeing access to international credit lines in case of abrupt
outflows
of private capital.
Highly centralized decision-making allows for swift, concerted action, such as official clampdowns on foreign-exchange
outflows.
Such support is clearly unsustainable; in fact, the CBR recently announced that it will allow the ruble to float, implying an exchange rate that reflects the market’s expectations concerning oil prices and future capital
outflows.
And, in its latest report, Global Financial Integrity ranked Malaysia second in the world for illicit capital movements, reflecting years of
outflows
from a massive informal economy tied to corruption.
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.
Since then, growth in these economies has slowed markedly, their stock markets have slumped, capital
outflows
have escalated, and many of their currencies have crashed.
But this figure is significantly down from its peak and, with capital
outflows
from China and elsewhere showing little signs of abating, is now trending lower.
Emerging markets have suffered capital
outflows
and currency weakness, but this is more a consequence of Federal Reserve interest-rate hikes than of any announcements emanating from the White House.
According to the African Union’s High Level Panel on Illicit Flows, chaired by former South African President Thabo Mbeki, Africa loses more than $50 billion every year from illicit financial
outflows.
These efforts should be accelerated, and the international community should support African countries’ own efforts to reduce illicit financial outflows, especially through improper trade invoicing, and to strengthen tax and customs administration.
As it stands, the renminbi is facing significant depreciation pressure, caused largely by a surge in capital
outflows.
Investors’ recognition of these risks may be one driver of capital outflows, meaning that distortionary incentives in the financial system are also contributing to the downward pressure on the exchange rate.
Indeed, one day we face surging capital inflows, as investors go into “risk-on” mode, and
outflows
the next as they switch risk off.
In West Africa, Ghana and Nigeria are the only countries that have dedicated policies on transfer pricing – put in place to monitor capital
outflows
from the oil sector, which by some estimates account for 30% of total transfer mispricing in Africa.
The globally disruptive effects of US monetary tightening – a rapidly rising dollar, capital
outflows
from emerging markets, financial distress for international dollar borrowers, and chaotic currency devaluations in Asia and Latin America – may loom less large in next year’s economic outlook than in a rear-view glimpse of 2015.
Given that
outflows
of skilled workers cannot be restricted – and, indeed, should not be – we must devise institutional mechanisms to work with it.
It took a €110 billion rescue package to curtail capital
outflows
and restore market confidence in the eurozone, and even the bigger member states were left gasping for credit.
An example of a red policy would be when unconventional monetary policies do little to boost a country’s domestic demand – but lead to large capital
outflows
that provoke asset-price bubbles in emerging markets.
Countries need to know that their companies will not suffer either from
outflows
of electricity to other EU countries during shortages, or from price increases, owing to the rising emphasis on renewables.
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