Prices
in sentence
6195 examples of Prices in a sentence
Indeed, US and global equities have vastly outperformed gold since the sharp rise in gold
prices
in early 2009.
Fourth, gold
prices
rose sharply when real (inflation-adjusted) interest rates became increasingly negative after successive rounds of quantitative easing.
Indeed, a report that Cyprus might sell a small fraction – some €400 million ($520 million) – of its gold reserves triggered a 13% fall in gold
prices
in April.
Countries like Italy, which has massive gold reserves (above $130 billion), could be similarly tempted, driving down
prices
further.
Nor is it a unit of account;
prices
of goods and services, and of financial assets, are not denominated in gold terms.
While gold
prices
may temporarily move higher in the next few years, they will be very volatile and will trend lower over time as the global economy mends itself.
Speculators could have “front run” the bank in the markets, selling short, driving equity
prices
down, and forcing the French financial institution to sell into a bottomless pit.
The rise in oil
prices
at the beginning of the century gave the economy an artificial boost, leading Goldman Sachs to include it among the world’s major emerging markets (one of the “BRICs,” along with Brazil, India, and China).
That may not seem like such a bad thing, given today’s excessively low inflation (partly a result of falling oil and commodity prices); the risk, of course, is that inflation will overshoot.
Such sentiments often spread and capture the public imagination at times of rapidly rising oil demand, sharp spikes in energy prices, and geo-political uncertainty.
Believers in oil scarcity point to the sustained annual average increase of oil
prices
from 2002 to 2008, declining output in many areas of the world, and the absence (until recently off the coast of Brazil) of large-scale oil discoveries in the last few decades.
In the face of relentless demand-side pressure, driven mainly by high-growth countries like China and India, some predict stratospheric energy prices, supply shortages, economic and social hardship, and even resource wars.
It is also a non-static concept, as estimates of reserves will generally be revised upwards or downwards as additional geologic or engineering data become available, as technology improves, and/or as economic conditions (such as oil
prices
and production costs) change.
With technological progress and rising oil prices, most of these reserves will become conventional, helping to push back peak oil for years.
The failure to distinguish clearly between resources and reserves – and to recognize the importance of prices, costs, and technology in transforming resources into reserves – results in bad predictions about an imminent peak in oil production and misinformation that has had a negative impact on policymaking.
It would pay higher
prices
for inputs and consumer goods, and British firms’ reduced integration into global value chains would undermine productivity.
Rising asset
prices
lead to a general increase in purchasing power, because many asset holders are willing (and able) to borrow more.
The problem is that asset
prices
and consumer-price inflation may move in different directions, as they did in the 2000’s, and that weighing both factors would produce inconsistent policy recommendations.
While Brazil has halved its official poverty rate since 2003, prohibitively high consumer-goods
prices
and astronomical credit-card interest rates (averaging 145%) have prevented many of those who have escaped poverty from attaining middle-class lifestyles.
Furthermore, the sharp appreciation of the real’s exchange rate – driven by high global commodities
prices
– has diminished export competitiveness.
The Bush administration once claimed that the Iraq war would be good for the economy, with one spokesperson even suggesting that it was the best way to ensure low oil
prices.
True, falling demand for natural resources in China (which accounts for nearly half of global demand for base metals) has had a lot to do with the sharp declines in these prices, which have hit many developing and emerging economies in Latin America and Africa hard.
And the collapse of oil
prices
by more than 60% since July 2014 has undermined the growth prospects of oil exporters.
The real worry, however, is not just falling commodity prices, but also massive capital outflows.
The search for higher yields drove investors and speculators to developing countries, where the inflows increased leverage, propped up equity prices, and in some cases supported a commodity price boom.
Capital outflows of this magnitude are likely to have myriad effects: drying up liquidity, increasing the costs of borrowing and debt service, weakening currencies, depleting reserves, and leading to decreases in equity and other asset
prices.
Capital outflows will adversely affect their equity prices, push up their debt-to-equity ratios, and increase the likelihood of defaults.
The problem is especially severe in commodity-exporting developing economies, where firms borrowed extensively, expecting high commodity
prices
to persist.
Those with high levels of foreign debt but with reserves should also consider buying back their sovereign debt in the international capital market, taking advantage of falling bond
prices.
As the report noted, it is difficult to understand why small countries maintain high tariffs on health products – a move that serves only to drive up domestic
prices.
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