Volatility
in sentence
690 examples of Volatility in a sentence
Indeed, Tobin designed it to solve an entirely different problem: excessive
volatility
in currency markets.
An across-the-board tax on transactions, they argue, would dampen financial
volatility.
Since these responses are overdue, they are severe and lead to energy price spikes and
volatility.
In an environment of economic
volatility
like the one in which we find ourselves today, a prudent central bank should do everything it can to raise expected and actual inflation, in order to gain the ability to stabilize the economy in any direction.
Technological “catch-up” will remain the underlying driver of convergence, beyond the short-term shocks and temporary problems that capital-flow
volatility
may cause.
But some countries show strong resilience in the face of pervasive violence and
volatility.
In order to bolster economic growth and innovation amid conflict and volatility, policymakers and investors should focus on building the creative industries.
Almost the only concrete outcome was the commissioning of a report by a group chaired by a senior French civil servant, Philippe Jurgensen, on whether intervention was an effective instrument against the
volatility
that seemed to be undermining trade relations.
When the report eventually came out, it acknowledged that “excess”
volatility
had “adverse consequences” for individual economies, as well as for the smooth functioning of the international adjustment process.
Many face macroeconomic risks, owing to exchange-rate volatility, large debt burdens, and non-diversified, unsustainable economic structures.
Given all the effort that the world’s “emerging markets” have devoted to shielding themselves from financial volatility, they have reason to ask: where in the world is the upside of financial liberalization?
When added to the normal shocks that afflict the world economy, this source of destabilizing
volatility
created the unstable world before 1987 that led many to wonder why somebody like Alan Greenspan – who had previously only spent a couple of years in government – would want the job.
Beyond hurting political credibility and market confidence, such
volatility
could create friction between elected politicians and civil-service technocrats, damaging a relationship that is critical to efficient, forward-looking, and fact-based decision-making.
They are expensive and a source of political and supply
volatility.
The Dollar and the Damage DoneBERKELEY – The US Federal Reserve is being widely blamed for the recent eruption of
volatility
in emerging markets.
Likewise, in the mid-1980s, when exchange-rate
volatility
gave rise to calls for protectionist trade measures, the US and Japan found a solution involving exchange-rate stabilization.
India has responded to this external
volatility
by trying to create a domestic platform of macroeconomic stability on which to build growth.
But problems arise when these policies are extended beyond repairing markets; the domestic benefits are at best unclear when economies are deeply damaged or need serious reform, while the spillovers from such policies fuel currency and asset-price
volatility
in both the home economy and emerging countries.
The $200 Trillion QuestionPerhaps the most remarkable trend in global macroeconomics over the past two decades has been the stunning drop in the
volatility
of economic growth.
In the United States, for example, quarterly output
volatility
has fallen by more than half since the mid-1980’s.
Volatility
in Asia began to fall only after the financial crisis of the late 1990’s.
In Japan and Latin America,
volatility
dropped in a meaningful way only in the current decade.
Indeed, the main question for 2007 is whether macroeconomic
volatility
will continue to decline, fueling another spectacular year for markets and housing, or start to rise again, perhaps due to growing geopolitical tensions.
I lean slightly toward the optimistic scenario, but investors and policymakers alike need to understand the ramifications of a return to more normal
volatility
levels.
Investors, especially, need to recognize that even if broader positive trends in globalization and technological progress continue, a rise in macroeconomic
volatility
could still produce a massive fall in asset prices.
Their admittedly crude analysis shows why, if
volatility
continues to fall in 2007, prices of stocks and other assets can still go a lot higher.
This brings us to the $200 trillion question (roughly the value of global money and asset markets, including housing): What could cause macroeconomic
volatility
to start rising?
But if a major flare-up causes investors to lose confidence in low volatility, the bottom could fall out from under equity and housing prices.
The human and economic costs of continued high-carbon growth include severe health impacts, growing disruption to infrastructure, and water and food security, as well as increasing market volatility, most notably in developing countries.
What matters for markets is not what happens in normal times, or even what happens when uncertainty and
volatility
rise; what markets care about are possible scenarios in truly adverse conditions.
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