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Shocks in sentence

1003 examples of Shocks in a sentence

There is mounting evidence that monetary-policy shocks affect risk premia, and that this channel operates internationally as well as domestically, with sizeable effects.
Political shocks included Brexit and Donald Trump’s victory in the United States’ presidential election – both unforeseen by the media or political elite.
When shocks to the system occur, agents do not know what will happen next.
Hence Keynes gave governments two tasks: to pump up the economy with air when it starts to deflate, and to minimize the chances of serious shocks happening in the first place.
A lot of attention has gone into making cars and factories more efficient since the first global energy shocks of the 1970’s.
Another, more plausible theory is that over the past fifteen years there have been various external challenges or shocks that have hit the country simultaneously.
Rigid as it was, with an extensive welfare system and an over-regulated labor market, Germany was unable to react to these shocks and ran into trouble.
All five shocks constitute historical developments that are good for the world as a whole, but problematic for Germany.
Finally, Bernanke claimed that “the growth fundamentals of the United States do not appear to have been permanently altered by the shocks of the past four years.”
Yet they render invaluable services, in terms of preservation of agro- and biodiversity, local communities’ resilience to price shocks or weather-related events, and environmental conservation.
There is no safety valve in currency depreciation when the economy is buffeted by external shocks.
Compare Argentina with another grain exporter, Australia, which has been hit by some of the same shocks.
Argentina is vulnerable to external shocks such as declining agricultural commodity prices because Argentina failed to develop a diversified export sector, one in which a broad range of industrial and service sectors are internationally competitive.
When a country gives up its monetary sovereignty, its banks are effectively borrowing in a foreign currency, making them exceptionally vulnerable to liquidity shocks, like that which sparked turmoil in Europe’s banking system in 2010-2011.
With the Netherlands, France, Germany, and Italy all facing populist insurgencies – and at least the first three holding elections this year – the Brexit and Trump shocks have naturally provoked anxiety that the next domino to fall will be one of these EU founding members, followed perhaps by the entire EU.
These inconsistencies can be explained by external shocks – a point emphasized by Hideo Kobayashi in his book Post-War Japanese Economy and Southeast Asia.
Without negative external shocks, exorbitant TFP growth would have declined gradually, as the returns from institutional adjustment, reallocation of resources, and technological catch-up naturally diminished, in accordance with the convergence hypothesis.
External shocks also explain China’s GDP slowdown since 2007.
It is likely that TFP has declined substantially as China’s economy has slowed in response to these shocks.
Unlike Keynesians, who focus on demand shocks, followers of the Austrian economist Joseph Schumpeter view cost shocks as important potential catalysts for structural reform and industrial upgrading – both of which are needed to avoid falling into a low-growth rut in the long term.
Given that improving overall productivity is the best way to defend against cost shocks, the new round of structural reform should be aimed at creating conditions for economic transformation and upgrading.
On the real economic side, all the advanced economies – representing 55% of global GDP – entered a recession even before the massive financial shocks that started in late summer.
Emerging economies were immediately affected by credit tightening (including trade finance) and rapid declines in exports, leading to similar shocks there.
It needs a mechanism for temporary transfers to countries that have put their public finances in order but are hit by adverse shocks.
It has been interesting to watch growth accelerate in the face of shocks such as the UK’s Brexit referendum and Trump’s election.
This makes economies significantly less vulnerable to external shocks.
Barring unexpected shocks, I believe that China’s inflation may peak soon.
Having entered the 2008-2009 crisis with sound initial conditions (including large international reserves, budget and balance-of-payments surpluses, and highly capitalized banks), they are nowhere near exhausting their fiscal and financial flexibility – and hence their capacity to respond to future shocks.
In particular, central banks’ behavior during the crisis has called into question whether inflation-targeting is an effective framework in the presence of systemic shocks, and, more broadly, whether it can be sustained throughout economic cycles.
And when the Fed printed mountains of money in the 1970s to try to dull the pain of that decade’s oil shocks, it triggered an inflationary surge that took more than a decade to tame.
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