Sentences with phrase «demand shock»

The phrase "demand shock" refers to a sudden and significant decrease in the demand for goods and services in an economy. This can happen when people stop buying things due to a crisis or a sudden change in their financial situation. It leads to a decrease in sales and affects businesses and the overall economic activity. Full definition
Cities / markets with lower economic volatility reduce the risk of negative demand shocks that may lead to rising vacancy rates and declining office rents.
The nominal exchange rate would have to return to its long run value following an aggregate demand shock.
Thus the decline in output in the east Asian region represented a significant negative demand shock to the Australian economy.
The U.S. housing market faces a negative demand shock in the form of diminishing foreign investment:
One is when the economy has been hit by a highly persistent adverse foreign demand shock — such as a recession in the economy of a major trading partner — while the domestic financial system is unimpaired (Chart 1, see «Case 3»).
In the event of demand shocks, there is not a large conflict between the real and nominal objectives; the monetary response is the same to meet both objectives, and the actions of all the inflation - targeting central banks would not be significantly different.
And based on past hurricanes, demand could actually rise «to a level higher than would have been the case had there been no hurricane, which would translate into a positive demand shock,» Goldman says.
But firms who change their prices twice as frequently should only get half the weight; because they can adjust to aggregate demand shocks twice as easily, and have only half the need for the central bank to adjust aggregate demand so they don't have to change prices.
Real - wages appear countercyclical during demand shocks and procyclical during supply shocks.
From Australia's perspective, there has been a large positive global demand shock in the resource sector over recent years that is likely to persist over the medium term.
I fear, too, that if the world economy were to take another turn for the worst over the next few years - a second demand shock following the global financial crisis — this time the UK will be in a very much weakened position to deal with the consequences because of the stagnation of the last three years.
Besides, it comes with a big punching bag and you can demand shock technique.
Carolee Schneemann demanded shock and laughter as she drew text from her vagina.
Finally, because high temperatures can simultaneously increase fuel demand and the cost of growing corn, the supply response of ethanol producers to temperature - induced demand shocks would likely be weaker than that of gasoline producers.
«Oil demand shocks reconsidered: A cointegrated vector autoregression.»
In addition to the usual worries about small markets and overbuilding, managers also worry about demand shocks that might affect enrollment numbers.
The fact that many advanced economies are suffering from deficient demand and have policy rates at or near the zero bound and that the U.S. dollar is a favored safe - haven asset may imply that adverse foreign demand shocks have a particularly strong effect on the value of the dollar, effectively transmitting the weakness to the U.S. economy.
In this situation, the overall monetary policy decision was relatively straightforward as the required movement was the same to meet both inflation and output goals, as is the case in the event of demand shocks.
So stabilisation in response to aggregate demand shocks can be perfect, if the central bank wants it to be.
The U.S. housing market is vulnerable to an acute negative demand shock.
But regardless of whether a decline in output occurs because of a negative demand shock or negative supply shock, the political pressure usually mounts on the Fed to «do something.»
Sometimes, it is difficult to disentangle the effects on real output from simultaneous supply and demand shocks.
Mian and Sufi argue that it was this «demand shock» that triggered the Great Recession, not the collapse of Lehman and other lenders.
«Once you get that demand shock, it takes a while to get new supply.»
The Case for Reduced Funding Levels When you look at the demand shock above you'll notice that there are both higher prices and higher «quantities» of companies and I know many entrepreneurs think this is good.
Take it a step further, in the very period of the demand shock, the central banker notices a bulge in deposits, as do all the member banks in equal error.
After observing this in one period the central bank will decide to lower interest rates, inferring from below - target inflation / prices that there has been a negative demand shock.
The first in 1994 demonstrates the pre-emptive monetary policy response to demand shocks.
Gold is traditionally less volatile than oil, because it has fewer industrial uses and is less exposed to supply and demand shocks.
With high - end housing sectors already experiencing supply glut, a demand shock couldn't have come at a worse time.
At the same time, other segments of the economy would remain ill - prepared to buttress the negative demand shock.
Consider a demand shock where excess demand and upward inflationary pressure lead the central bank to raise interest rates.
Mian and Sufi argue that it was this «demand shock» that triggered the Great Recession, not the collapse of Lehman and other lenders.
In a 2010 article in Harper's Magazine, Frederick Kaufman argued the Goldman Sachs Commodity Index caused a demand shock in wheat and a contango market on the Chicago Mercantile Exchange, contributing to the 2007 — 2008 world food price crisis.
MGM will likely face a demand shock, coupled with an increase in marketing, promotion and security costs that heighten the «risk of negative revisions to estimates,» Susquehanna Financial Group analyst Rachael Rothman said in a note to clients Tuesday.
How does the local production of real estate assets, specifically housing, react to demand shocks?
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