Speculative
in sentence
347 examples of Speculative in a sentence
For private-sector debt, much depends on its type: the hedging sort, where a debtor’s cash flow covers all obligations; the
speculative
type, where cash flow covers interest only; or the Ponzi kind, where cash flow does not even cover that.
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.
One area of concern is the health and stability of growth in emerging markets as they attempt to benefit from capital inflows; satisfy North Atlantic demands for open financial markets; and manage the resulting instability created by
speculative
“hot money,” the carry trade, irrational exuberance, and overshooting.
Continued recession and recurrent
speculative
attacks in the bond markets will prevent at least some over-indebted countries from attaining their adjustment targets, creating conditions for political crisis within the eurozone and individual countries.
Meanwhile, two
speculative
bubbles – in the real estate market and in mortgages – have become grafted upon each other and now dominate economic activity in the US.
Quarterly earnings cycles, real-time pricing, and constant scrutiny by shareholders have pushed pharmaceutical companies toward projects with clear, immediate payoffs – at the expense of more speculative, but potentially transformational research.
But any such
speculative
boom is inherently unstable, as the stories evolve in time and with new shocks, whose effect on markets is most uncertain.
It was, in fact, an excessive
speculative
boom in the stock market and the housing market that got us into this financial mess in the first place.
Where our still-ailing world economy goes from here is as uncertain as the
speculative
markets that played such an important role in both the financial crisis and the recovery.
That is why some people are advocating that China undertake a one-shot, big-bang appreciation – large enough to defuse expectations of further strengthening and deter inflows of
speculative
“hot” money.
In 1911, the diplomatic crisis over Morocco was accompanied by a French
speculative
attack on German financial markets.
The IMF has Failed, Out with CamdessusCAMBRIDGE: If emerging markets have become a
speculative
casino, then the IMF's managing director, Monsieur Camdessus, is the chief croupier.
The consensus view is rather that of William McChesney Martin, who served as US Federal Reserve Chairman from 1951 to 1970: a good central bank prevents
speculative
excess by “taking away the punchbowl before the party really gets going.”
But the silent run on the yen could easily lead to a
speculative
attack, like that which struck Japan’s neighbors during the Asian financial crisis in the 1990’s.
Competitive currency devaluation further increases the risk of a
speculative
attack.
Their
speculative
frenzies ruined shareholders, customers, and the economy.
At the same time, fears that
speculative
bubbles in cryptocurrencies could drive macroeconomic instability appear overstated.
As Charles Kindelberger showed in his classic historical survey Manias, Panics, and Crashes,
speculative
bubbles and subsequent crashes sometimes lead to post-crash depressions.
As late as November of last year, IMF Managing Director Dominique Strauss-Kahn had thrown cold water on Brazil’s efforts to stem inflows of
speculative
“hot money,” and said that he would not recommend such controls “as a standard prescription.”
Set at a very low level – 0.05% is a commonly mentioned rate – such a tax would raise hundreds of billions of dollars for global public goods while discouraging short-term
speculative
activities in financial markets.
Nor can policymakers afford to ignore the fourth mismatch – between ultra-low nominal interest rates and the relatively higher risk-adjusted return on equity (ROE) for investors – which has contributed to
speculative
investment and widening wealth and income inequality.
But the long run can be long indeed, and the influence of
speculative
capital flows can be substantial and sustained.
But this has undermined productivity, encouraged
speculative
activity, fueled asset bubbles, and exacerbated income and wealth inequality.
Many investors also feel the need to balance increasingly
speculative
investments (“satellite positioning”) with much safer investments (“core positioning”).
Such massive central-bank intervention was necessary because a confidence crisis gripped much of the eurozone, with government bonds and banks on the losing end of a slow-motion
speculative
attack.
So the
speculative
attacks were stopped, at least temporarily (though interest-rate spreads in Spain and elsewhere have begun to creep up again).
So his recent exercise in
speculative
future history, which asks whether economic growth in the United States has come to an end, has attracted much favorable attention.
The state must also preserve continuity in the market economy when the
speculative
bubble that has funded its transformation bursts.
So what is the role of elected politicians in the face of a
speculative
attack?
Japanese and European central bankers did not lower interest rates far enough fast enough, banking-sector regulators shied at the jump in
speculative
lending, and politicians were unwilling to expand fiscal policy sufficiently.
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