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Shocks in sentence

1003 examples of Shocks in a sentence

But while theory suggests that flexible exchange rates should blunt foreign monetary or financial shocks, in practice, such a currency regime rarely works on its own.
For other countries, it is important to focus on policies that can strengthen resilience to foreign financial or monetary shocks.
Is the purpose to stabilize the bloc in the event of shocks?
As to the first question, during its 20-year history, most of the eurozone’s shocks have been asymmetrical, centering on member states that pursued irresponsible policies.
With the exception of the 2008 crisis, then, eurozone shocks have generally been small and self-inflicted, suggesting that the appropriate response should take the form of domestic policies to build more robust budgetary buffers.
The triple threat of rising world demand, conversion of food into fuel, and climate shocks have conspired to push world food prices much higher than anticipated even a couple of years ago.
Such crises cause major negative demand shocks, as excess debt and falling asset prices damage balance sheets, which then require increased savings to heal – a combination that is lethal to growth.
Another notable trend is that individual economies are recovering from the recent demand shocks at varying rates, with the more flexible and dynamic economies of the US and China performing better than their counterparts in the advanced and emerging worlds.
Monetary shocks led to geopolitical irrelevance.
What would happen if more shocks undermine the confidence that fueled America’s boom?
Intrinsic vulnerability made for heightened exposure to political shocks, and disputes about a Central European customs union and about war reparations was enough to topple a house of cards.
Unless we can recover a world in which business profits actually serve a purpose, the likelihood of more economic, political, and social shocks will remain intolerably high.
Supply shocks, on the other hand, ought to have a significant positive impact.
Moreover, so-called tail risks (low-probability, high-impact shocks) will be less salient in 2014.
Some of these countries – for example, Indonesia – have recently undertaken more policy adjustment and will be subject to lower risks, though their growth and asset markets remain vulnerable to policy and political uncertainties and potential external shocks.
But the decreased flexibility in response to economic shocks will certainly test it.
Indeed, the idea that substantial shocks could soon hit the US financial system is not far-fetched.
Governance systems and constitutional structures differ in the extent to which they require broad consensus for official action, or to change policy direction in response to shocks or shifting conditions.
In fact, they amassed far more than they needed – $6.5 trillion, at last count – effectively becoming over-insured against external balance-of-payments shocks.
By worsening Italy’s already fragile fiscal position, the higher deficit will limit the scope for adjustment in the event of future shocks.
For example, the “Dynamic Stochastic General Equilibrium Model of the Euro Area,” developed by Frank Smets of the European Central Bank and Raf Wouters of the National Bank of Belgium, is very good at giving a precise list of external shocks that are presumed to drive the economy.
But nowhere are bubbles modeled: the economy is assumed to do nothing more than respond in a completely rational way to these external shocks.
It has suggested that central banks may want to consider higher inflation targets in order to avoid hitting the zero bound in the event of deflationary shocks.
This convergence will contribute to more sustainable economic growth, with Asia’s economies rebalancing toward domestic demand, especially household consumption, and thereby becoming less vulnerable to external shocks.
Moreover, social safety nets should be created or strengthened, in order to help safeguard the middle class from negative shocks and boost consumption growth (which continues to be hampered by precautionary saving).
Finland, too, has been having trouble adjusting to the multiple shocks it has confronted, with GDP in 2015 some 5.5% below its 2008 peak.
In response to asymmetric shocks and divergences in productivity, there would have to be adjustments in the real (inflation-adjusted) exchange rate, meaning that prices in the eurozone periphery would have to fall relative to Germany and northern Europe.
Leading industrial economies have demonstrated remarkable resilience in the face of large negative financial-sector shocks over the past decade – as has China.
One of those international organizations is the World Bank Group, which engages with countries to help protect the poor and vulnerable, improve resilience to refugee and migration shocks, and ensure inclusive and accountable service delivery.
But now there could be new shocks.
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