Shock
in sentence
1561 examples of Shock in a sentence
The Abdication of the LeftRONDA, SPAIN – As the world reels from the Brexit shock, it is dawning on economists and policymakers that they severely underestimated the political fragility of the current form of globalization.
These countries experienced globalization mostly as a trade and foreign-investment shock, rather than as an immigration
shock.
Similarly, when a state such as Michigan is hit by recession in its key economic sector (the auto industry), Washington collects less federal tax but maintains – if not increases – local spending, which partially offsets the
shock
to state income.
Because India is still running a trade deficit, there could be some pressure on the rupee following any negative
shock.
The lesson for India is that, in the event of a domestic or external shock, full convertibility could prove to be a costly, short-lived experiment.
All this is a rude
shock
for Europe.
But when an economy faces a major adverse shock, such as a sharp increase in oil prices, then the twin goals of stabilizing inflation and maintaining economic activity conflict, and the central bank’s job becomes more difficult.
We were told by those on the new president’s political team to generate as much validation as possible for a large stimulus because big numbers approaching $1 trillion would generate “sticker shock” in the political system.
It somehow survived the post-Soviet shock, and has now recovered.
This divergence on fiscal policy has many causes, and no single
shock
will alter it.
A
shock
in one place produces tremors elsewhere, even when there are no direct financial links, because pattern-seeking market participants perceive fundamental forces at work.
The grotesquely violent videos that Daesh produces have
shock
appeal.
But the narrow view misses the most critical consideration: this “Japan shock” has not occurred at a time of great economic strength.
Moreover, the Japan
shock
is not the only negative factor at work today.
But, with one
shock
following another, the “exit strategy” keeps being deferred.
This raises perhaps the most troublesome concern of all: with a post-crisis world getting hit by one
shock
after another, and with central banks having no latitude to cut interest rates, it is not hard to envision a scenario of open-ended monetary expansion that ends in tears.
As a result, many institutions had to write off much of their loan portfolios and take heavy losses, sending
shock
waves through the industry and the investor community – and causing the poor to suffer.
Oil above $140 a barrel was the last straw – coming on top of the housing busts and financial shocks – for the global economy, as it represented a massive supply
shock
for the US, Europe, Japan, China and other net importers of oil.
A negative oil shock, together with rising government-bond yields – could clip the recovery’s wings and lead to a significant further downturn in asset prices and in the real economy.
As the late American economist Hyman Minsky explained, the higher the share of debt that falls into the speculative or Ponzi categories, the higher the risk that a confidence
shock
will trigger a sudden wave of deleveraging that quickly morphs into a full-blown financial crisis.
Longer maturities leave more time for adjustment, lowering the risk of a confidence
shock.
So the risk remains that a severe enough financial
shock
in the EU will affect all other borrowers in the same country in a self-fulfilling manner.
Europe’s recent growth performance has been dismal, especially compared to that of the United States, which suffered from the same
shock
six years ago but has experienced a much stronger recovery in output and employment.
The grim irony here is that, prior to such a shock, preparing for restructuring encourages lenders to provide more overnight loans.
The “Volcker shock” created a triple whammy: the US entered a deep recession; commodity prices plummeted; and Latin America’s capital inflows abruptly reversed, shifting toward US dollar-denominated instruments that offered better yields.
Marginalizing MalariaSAN FRANCISCO – Last fall, Bill and Melinda Gates sent
shock
waves through the global health community when they announced the audacious goal of eradicating human malaria from the face of the planet.
The
shock
and its effect are large.
Africa’s Post-Brexit OpportunityLONDON – The entire world felt the
shock
waves from the decision by voters in the United Kingdom to leave the European Union, and Africa was no exception, especially given its close historical ties with many EU member states.
Against this background, an external
shock
could bring these fragile economies to a sudden stop, leading to devastating poverty and hardship.
Well, as the Nobel laureate economist Paul Krugman was at pains to demonstrate in a recent paper, an economy with flexible exchange rates and debt denominated in domestic currency will expand, not contract, in response to a foreign deleveraging
shock.
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