Shock
in sentence
1561 examples of Shock in a sentence
It may come as a
shock
to non-economists, but banks play no role in the standard economic model that monetary policymakers have used for the last couple of decades.
Defective growth models in advanced countries, based on excess credit and domestic aggregate demand (and complicated by structural flaws and limited adjustment mechanisms in Europe), led to instability, a crisis, and a large negative
shock
to the real economy.
Adverse trade developments are a negative supply
shock.
Skillful monetary policy can help offset a negative demand shock, but can do little or nothing to offset a supply
shock.
But it is also because the supply
shock
did not hit when the 2016 vote took place.
To offset the negative shock, the Chinese government enacted a four-trillion-renminbi stimulus package, and the PBC shifted its policy stance abruptly.
Fortunately, several emerging economies continue to have cushions and
shock
absorbers.
If the journey to the crossroads is accelerated by a large geopolitical
shock
(originating in, say, the Middle East or North Korea) and/or a serious political breakdown in Europe (for example, a meltdown in Cyprus or prolonged political paralysis in Italy), the probability of taking the adverse path rises to an uncomfortably high level.
In fact, the biggest recurrent
shock
to the German balance of payments has come not from the real economy, which would affect the current account, but from financial conditions.
On the contrary, despite many loud assertions after the initial Brexit
shock
that things must change, there are many indications that business as usual will prevail.
(Of course, a fresh
shock
to demand could send unemployment back up and reduce inflation; but the “natural rate” always exerts its centripetal force.)
This approach marks a sharp departure from the past, and another
shock
to the establishment and expert opinion.
In healthy economies, a contractionary demand
shock
sets off two types of responses fueling recovery.
One would expect that the
shock
from the financial crisis should be comparable for the United States and the eurozone, given that they are of similar size, exhibit a similar degree of internal diversity, and experienced a similar increase in house prices (on average) in the years preceding the bust.
But the fact remains that its economy, supposedly the most flexible in Europe, has not recovered from the
shock
five years later, despite massive fiscal and monetary stimulus, coupled with a substantial devaluation.
But can Europe deal with such a shock, and what would happen to the US if that happened?
Yet the indictment’s failure to mention violence against women is a “huge shock” to the victims, according to Congolese human rights organizations.
Yes, the initial disequilibrium
shock
of the industrial revolution was and is associated with rapidly rising inequality as opportunities are opened to aggressiveness and enterprise, and as the market prices commanded by key scarce skills rise sky-high.
And, finally, the fourth group consists of economic and financial wildcards like Greece and Russia – countries that could succeed in restoring growth and financial stability, but could just as easily implode, sending
shock
waves across Europe and beyond.
An adverse supply
shock
is automatically divided equally between inflation and real GDP, which is pretty much what a central bank with discretion would do anyway.
But that need not happen until many months – perhaps years – after a
shock.
Notice that if in the long run the debt is reduced sufficiently, and the terms-of-trade
shock
abates somewhat, the real exchange rate need not depreciate that much, and may even end up appreciating a bit.
The initial export
shock
was likely to reduce growth.
That “golden era” ended with the so-called Nixon
shock
in 1971, when America lost the surpluses that, recycled internationally, kept global capitalism stable.
Yet most people’s instinct was to characterize the
shock
as temporary and reversible – a V-shape disruption, featuring a sharp downturn and a rapid recovery.
But some observers already saw signs that this
shock
would prove more consequential, with the advanced economies finding themselves locked into a frustrating and unusual long-term low-growth trajectory.
This will send
shock
waves throughout the world.
But sometimes
shock
waves are needed to break the ice and start the water flowing again.
The vote for Brexit was a great shock; the morning after the vote, the disintegration of the European Union seemed practically inevitable.
But as the initial
shock
of the British referendum wears off, something unexpected is happening: the tragedy no longer looks like a fait accompli.
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