Prices
in sentence
6195 examples of Prices in a sentence
The Gain in SpainMILAN – The Spanish economy is beginning to attract investors’ attention – and not only because asset
prices
are depressed in the current climate (arguably implying a good buy for longer-term, value investors).
The underlying idea is simple: every year, countries around the world set aside reserves as insurance against contingencies such as an abrupt downturn in foreign lenders' sentiment or a collapse of export
prices.
Strategic reductions in price to undercut a competitor pass the test of rational duty (as long as
prices
do not fall below costs).
After all, producing maximum quantities at minimum
prices
is the holy grail of any economy.
Over the last two years, India has invalidated or otherwise attacked patents on 15 drugs produced by international firms in order to make way for local champions, claiming that exclusivity enables companies to charge high
prices
that harm consumers.
Allowing local producers to copy patented medicines, officials assert, will bring down
prices
and expand access.
But drug patents and
prices
are not the main – or even a major – obstacle to patients’ access to medical care in India.
Indeed, the Fed decided to delay raising interest rates partly because US policymakers expect dollar appreciation, by lowering import prices, to undermine their ability to meet their 2% inflation target.
In reality, while currency movements can have a significant impact on inflation in other countries, dollar movements have rarely had a meaningful or durable impact on
prices
in the US.
The difference, of course, lies in the US dollar’s dominant role in the invoicing of international trade:
prices
are set in dollars.
The
prices
of some 93% of US imports are set in dollars.
In this environment, the pass-through of dollar movements into non-fuel US import
prices
is one of the lowest in the world, in both the short term (one quarter out) and the longer term (two years out), for three key reasons.
First, international trade contracts are renegotiated infrequently, which means that dollar
prices
are “sticky” for an extended period – around ten months – despite fluctuations in the exchange rate.
Second, because most exporters also import intermediate inputs that are priced in dollars, exchange-rate fluctuations have a limited impact on their costs and thus on their incentive to change dollar
prices.
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.
And that is likely to be an upper bound, because it assumes that US retailers will pass through to consumers the full amount of any increase in import
prices.
Because the dollar
prices
of most of these countries’ imports are not very responsive to exchange-rate movements, the pass-through of those movements into import
prices
denominated in their home currencies is close to 100%.
But while it is true that some global developments – especially falling commodity prices, and perhaps also slowing emerging-economy growth and rising financial volatility – may push down inflation, dollar appreciation will not, at least not in any meaningful way.
The venture capitalist Peter Thiel, who recently joined the debate, falls into the latter camp, asserting that robots will save us from a future of high
prices
and low wages.
For example, this summer’s stock-market crash was widely viewed as a natural correction, because equity
prices
– driven largely by government interventions – had risen over the previous year far above what economic fundamentals merited.
Nonetheless, when
prices
collapsed, the government moved fast, suspending trading of a substantial number of stocks and pursuing price-keeping operations that resembled those pursued by Japan in the 1990s.
Indeed, China’s leaders seem convinced that price-keeping operations amount to an effective mechanism for manipulating stock
prices
in whatever way they see fit.
China should continue along this path, pursuing the kind of monetary-policy approach – aimed at securing the right combination of
prices
and employment – that prevails in free-market economies.
They need to reintroduce true two-way risk, so that asset
prices
again reflect underlying fundamentals.
The decline in world commodity prices, led by crude oil, has made managing the national budget easier.
Macri’s macroeconomic policy approach – which also included increasing
prices
for public services that had been frozen by the previous government and implementing a tax amnesty program that provided the government with more fiscal revenues – rested on several controversial assumptions.
Contrary to the government’s expectations, the peso’s depreciation had a large impact on consumer
prices
– as critics had warned.
The central bank’s new focus on inflation is unlikely to help matters, either, because it will undermine economic activity and exacerbate the pain experienced by the most vulnerable, for whom unemployment may be worse than rising
prices.
But Iran has faced similar economic difficulties before – in the 1980’s, oil exports fell significantly amid the country’s eight-year war with Iraq, and in 1986-2000 global oil
prices
were extremely low – and handled them relatively well.
First, prohibiting oil exports is more painful when world oil
prices
are rising.
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