Volatility
in sentence
690 examples of Volatility in a sentence
At the same time that regulatory changes have reduced the intermediation capacity of traditional liquidity providers, new, computer-driven intermediaries with negligible capital buffers have made it easier to flee the market when
volatility
rises.
The bad news is that liquidity disruptions are likely to occur more frequently, requiring careful attention to the size of illiquid exposures in periods of low
volatility.
Exchange rate
volatility
for the pound is bound to continue until the referendum, and to intensify at moments when a vote for “Brexit” looks more likely.
Specifically, small developing countries should focus on building institutions, such as central banks and finance ministries, that explicitly seek to minimize the macroeconomic
volatility
associated with globalization.
Highly leveraged systems in finance-dependent economies were the first to hit a wall, surprising many who had uncritically bought into the “Great Moderation” – the idea that macroeconomic and asset-market
volatility
had eased permanently.
Getting Globalization RightOXFORD – Recent evidence suggests that much of the world has entered a period of low financial-market
volatility.
The European Union has taught us valuable lessons over the last few decades: first, that financial integration requires eliminating
volatility
among national currencies; next, that eradicating exchange-rate risk requires doing away with national currencies altogether; and now, that monetary union is impossible, among democracies, without political union.
While commodity prices are always more variable than those for manufactured goods and services, commodity markets over the last five years have seen extraordinary, almost unprecedented,
volatility.
Economic insecurity and political
volatility
create new opportunities for exploitation and inspire increasingly sophisticated methods for carrying out corrupt activities.
Banks can use derivatives to hedge risk – say, by ensuring that oil producers to which they lend lock in today’s prices for their product through derivatives contracts, thereby protecting themselves and the bank from price
volatility.
In the short to medium term, that decline may create a vacuum and lead to
volatility
and heightened risk, because, as many have noted, there are few candidates to replace the US.
Many emerging-market policymakers view accumulation of foreign-exchange reserves during the 2000’s as having insured their countries against exchange-rate
volatility
and loss of export competitiveness.
But while it is true that some global developments – especially falling commodity prices, and perhaps also slowing emerging-economy growth and rising financial
volatility
– may push down inflation, dollar appreciation will not, at least not in any meaningful way.
The yen and the Deutschemark emerged as new potential reserve currencies, although the Japanese and German governments and central banks were profoundly worried about this new role for their currencies and the
volatility
that it might entail.
With interest rates set to rise in the United States this year,
volatility
in international capital markets can be expected to increase.
Casting doubt on these structures, which have sustained stability over the last seven decades, would merely fuel more nationalism and competition, opening the way for
volatility
and conflict.
A lack of investment in agriculture that feeds local communities makes these countries vulnerable to international price shocks, as well as to exchange-rate
volatility.
If managed in ways that are transparent and participatory, and if countries combine their efforts regionally, food reserves can be an effective way to boost sellers’ market power and counteract speculation by traders, thereby limiting price
volatility.
While not a cause of price volatility, speculation on derivatives of essential food commodities significantly worsens it.
Weather-related events are a major cause of price
volatility
on agricultural markets.
China’s Bumpy New NormalSHANGHAI – China’s shift from export-driven growth to a model based on domestic services and household consumption has been much bumpier than some anticipated, with stock-market gyrations and exchange-rate
volatility
inciting fears about the country’s economic stability.
For example, since the 1987 stock-market crash in the United States, the importance of having circuit breakers has been recognized; but if improperly designed, such reforms can increase
volatility.
Still, stock-market and exchange-rate
volatility
can have real effects.
With politicians struggling to respond to the crisis, economic pundits were left wondering whether the “Great Moderation” of low business-cycle
volatility
since the 1980s was turning into another Great Depression.
Recent
volatility
reinforces this temptation.
One set of complications arises from external global imbalances, distortions, and heightened
volatility
in capital flows, exchange rates, and relative prices.
In short, emerging economies have been challenged by externally generated macroeconomic shifts, unconventional monetary policies, widespread volatility, and slow growth in developed markets.
Generally, those that have fared better, such as India, have combined sound growth fundamentals and reforms with pragmatic and activist measures to counter the external sources of
volatility.
As these economies add items – protecting themselves from volatility, countering unfavorable external conditions, and adapting to powerful technological trends – to their core structural growth agendas, they will invariably make mistakes, and even stumble.
North Korea’s ever-worsening economic situation, internal structural erosion, and international isolation have substantially increased the risk of volatility, with potential outcomes ranging from implosion to explosion.
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