Volatility
in sentence
690 examples of Volatility in a sentence
Most crucially, the report calls for an enhanced global financial safety net to ensure that countries are well protected against excessive capital-flow
volatility
and self-fulfilling financial market panics.
But that will be impossible without bold new global policies that tame harmful capital-flow
volatility.
And floating and fixed exchange-rate regimes coexist uneasily, because
volatility
tends to affect the floating currencies (often the euro, and recently the Latin American currencies).
Global economic instability correlates strongly with energy-price
volatility.
And some are implementing risk-management and hedging tools to shield farmers from drought and flood, and poor consumers from the food-price
volatility
that such disasters cause.
The VIX index, which measures stock-market volatility, had hit 44% in August 1998, and during the euro’s first few years, it hovered around 25-30%, compared to around 12% today.
In 1999, despite slightly below-target inflation, high unemployment, and financial-market volatility, the ECB Governing Council did not even consider zero or negative interest rates, much less unconventional policy measures.
Though insignificant in overall trade terms, especially when compared with the
volatility
of floating exchange-rate regimes, the renminbi’s unexpected weakening sparked a global furor.
In adapting to today’s globalization, German banks, with their multiple roles, have a considerable advantage deriving from the diversification of their earning streams, as compared to institutions more exposed to the inherent
volatility
of most trading and fee-based advisory income.
Opening up to foreign direct investment and other non-debt capital flows may serve to boost economic growth without adverse side effects on macroeconomic
volatility
or a risk of crisis.
But a new issue risks bringing about a similarly problematic outcome: By repeatedly repressing financial-market
volatility
over the last few years, central-bank policies have inadvertently encouraged excessive risk-taking, which has pushed many financial-asset prices higher than economic fundamentals warrant.
To the extent that continued currency-market
volatility
spills over into other markets – and it will – the imperative for stronger economic fundamentals to validate asset prices will intensify.
But the only way to take advantage of the re-alignment’s benefits, without experiencing serious economic disruptions and financial-market volatility, is to introduce complementary growth-enhancing policy adjustments, such as accelerating structural reforms, balancing aggregate demand, and reducing or eliminating debt overhangs.
If Chinese banks and firms are slow to adjust, liberalizing international capital flows will lead only to more volatility, fewer offshore deposits, and less reliance on the renminbi for settling merchandise transactions – exactly as has been the case recently.
They have embarked on the normalization path by hiking official interest rates in order to nip inflation in the bud, thereby preventing price
volatility
from choking off future economic growth.
A Financial Early-Warning SystemNEW YORK – Recent market
volatility
– in emerging and developed economies alike – is showing once again how badly ratings agencies and investors can err in assessing countries’ economic and financial vulnerabilities.
Indeed, the recent sudden rise in market
volatility
suggests that they are as bad as rating agencies at detecting the early warning signs of trouble.
The other is capital-flow volatility, which has driven policymakers in some countries to pursue their own monetary easing or to impose capital controls, in order to prevent damage to growth in the tradable sector.
After the turmoil of the 2008 crisis subsided, a variety of indices of financial conditions displayed comparatively low levels of
volatility
(by historic standards) through the spring of 2013.
Indeed, tighter liquidity conditions and increased
volatility
in financial markets are the byproduct of the reversal in the long cycle of foreign purchases.
The Fed’s decision to raise rates is a historic moment for financial markets and is already ushering in a period of increased
volatility
for asset prices worldwide.
So there was unwelcome and unneeded market
volatility
because Trichet couldn’t get the message out straight.
Continued geopolitical
volatility
will delay, if not obstruct, the emergence of a new, world-class Asia.
In these circumstances, it is not surprising that financial markets have returned to extreme
volatility.
Don’t Cry for Me, Ben BernankeWASHINGTON, DC – Financial
volatility
since Federal Reserve Chairman Ben Bernanke’s announcement in May that the Fed would “taper” its monthly purchases of long-term assets has raised a global cry: “Please, Mr. Bernanke, consider conditions in our (non-US) economies when you determine when to end your quantitative-easing policy.”
Thus, it would be natural for the Fed to worry about slowing economic growth in emerging countries (accentuated in countries like Brazil and India by the financial
volatility
that followed the Fed’s taper talk in May).
On the contrary, US President Donald Trump’s posturing has increased economic uncertainty, contributed to stock market corrections, and added
volatility
to capital markets.
In a world that is highly integrated financially and prone to episodes of volatility, weakened multilateralism will reduce the ability of global bodies – like the World Trade Organization and the International Monetary Fund – to mediate disputes.
But such hikes sometimes (like now) would have to be huge, and adopting erratic policies that mirror the
volatility
of the market is never a good idea.
Yet financial-market participants have largely bypassed them, brushing aside today’s major risks and ignoring the potential
volatility
that they imply.
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