Shocks
in sentence
1003 examples of Shocks in a sentence
The federal government’s role should be to make Puerto Rico a hub for investing in clean, renewable energy that is resilient to weather
shocks.
Britain’s ability to restore a sense of calm amid far-reaching uncertainty about its economic and financial future shows how, with the right approach, political actors can manage
shocks
and surprises.
He pointed out that, while rigid systems may seem more stable, they are not equipped to cope with unexpected shocks, making them fragile in the long run.
Fortunately, China’s relatively strong fiscal and foreign-exchange positions can cushion the economy against short-term
shocks.
External
shocks
affect the offshore exchange rate first, and then feed through to the onshore exchange rate.
The current “competitive austerity” trend is irrational, first and foremost, because, by undermining domestic demand, it directly controverts the currency union’s fundamental principle that a large domestic market should act as a buffer against external demand
shocks.
Now Draghi has signaled that, with the eurozone one or two
shocks
away from deflation, the inflation outlook may soon justify quantitative easing (QE) like that conducted by the US Federal Reserve, the Bank of Japan, and the Bank of England: outright large-scale purchases of eurozone members’ sovereign bonds.
For a country to benefit from free international capital movements, however, it must have, inter alia, sound and strong financial institutions to prevent panic movements of capital and withstand systemic
shocks
if such movements occur.
Today, liberalization of the political system, without strengthening its ability to absorb the
shocks
of political struggle, seems to incite instability, too.
And, given that resource assets are scarce and non-renewable, the traditional practice of auctioning and leasing land to keep the fiscal deficit under control is unsustainable – especially at a time when external
shocks
or a domestic economic downturn could easily trigger a short-term solvency crisis or debt default.
For example, more needs to be done to strengthen the global economy’s resilience against sudden
shocks.
Countries like Germany are adamantly opposed to a fiscal union, with a central EU budget for responding to asymmetric shocks, because they would be the chief contributors.
One in five listed corporations carries gross leverage of more than eight times equity and earns less than two times interest coverage, weakening considerably these companies’ resilience to growth
shocks.
During the global economic crisis, the Fed eased global liquidity
shocks
by undertaking currency swaps with other major central banks.
More often than not, however, the
shocks
have been ideological, with no basis in science.
As a result, though several Arab economies are growing at 3-5% per year, they are highly vulnerable to disruptive technologies (witness the shale-energy revolution) and economic
shocks
(for example, recessions in the main oil importers).
Although oil accounts for a smaller part of the energy mix nowadays and spare capacity is currently well ensured, chiefly by Saudi Arabia, a price shock would still have global effects – as such
shocks
have had in the past.
The cost of such policies rises with the need for structural change to sustain growth and employment (and to recover from unbalanced growth patterns and shocks).
By keeping banks and other private-sector firms at lower levels of debt, vulnerability to
shocks
is reduced.
A decade ago, economists were optimistic that flexible exchange rates would allow emerging markets to insulate their economies from monetary-policy
shocks
coming from the developed countries.
The Japanese government also was happy; having just restored fiscal balance after the oil-price
shocks
of the 1970's, it was spared the need to run Keynesian-type deficits to deal with the post-1985 endaka fukyo .
They cannot afford to mishandle unavoidable challenges, such as those stemming from domestic institutional weaknesses, political uncertainty, and external
shocks.
Moreover, the SCO sought a consensus on how, in Chinese President Hu Jintao’s words, to guard the region “against
shocks
from turbulence outside the region.”
But this was due not to bilateral corrections in these countries’ trade relationships with the US, but mostly to their energy dependence and the decade’s energy price
shocks.
The fact that relatively moderate
shocks
have caused such profound trauma in emerging markets makes one wonder what problems a more dramatic shift would trigger.
And Bernanke knows as well as anyone that none of the vast academic literature suggests a large role for asset prices in setting monetary policy, except in the face of extraordinary
shocks
that influence output and inflation, such as the Great Depression of the 1930’s.
The currency basket feature -- rather than a dollar or Yen reference -- takes account of the multinational trade interests of Korea and the crawl recognizes both inflation differentials across countries and an evolving role for the real exchange rate that takes into account the requirements of trade-based growth plus the need to contain current account deficits in the face of external
shocks
to demand or the terms of trade.
Given that these policies enabled these countries to respond well to
shocks
coming from the crisis epicenter, there are strong incentives to keep them in place.
They are facing the argument that the United States’ monetary union works much better because there is a large federal budget to smooth the impact of asymmetric
shocks
– that is,
shocks
to individual states.
But this does not imply that these mechanisms also provide insurance against
shocks
(sudden changes in income for individual states).
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