"Price distortions" refer to situations where the normal market prices of goods or services are not accurately reflecting their true value. This can occur due to various factors such as government regulations, market manipulation, imbalances in supply and demand, or external shocks. These distortions can lead to price levels that are either unreasonably high or low, causing inefficiencies and misallocation of resources within the economy.
Full definition
The Perry proposal, in contrast, would: pick winners and losers, cause significant
price distortions in wholesale electricity markets, constitute government interference in markets, punish ratepayers, create obstacles to private investment in generation, and increase prices for customers.
Global trade wars (or even the threat of such) are not good for business and are, in fact, INFLATIONARY because of supply dislocations which
cause price distortions.
Around the edges of south eastern towns, perfectly good agricultural land often remains uncultivated as a result
of price distortions created by the Metropolitan Green Belt.
In 2014, 55 House Republicans inveighed against a government subsidy which «has not only cost taxpayers billions, but has caused
significant price distortions in wholesale electricity markets.»
This means 78 % of the subsidy was due to domestic
pricing distortions which suggest that unilateral subsidy reform is in countries» domestic interests.
Do you find yourself lining up with doves like Janet Yellen who believe low interest rates are good for employment or people like Ron Paul and Stanley Druckenmiller who worry
about price distortions and asset bubbles?
Behavioral explanations focus on investors» cognitive biases, and the human tendency to use simple rules of thumb to make quick intuitive decisions, with individuals» collective decision - making mistakes translating into
security price distortions.
In 2004, after «flipping» had become a term cops and janitors were using to describe the way to get rich in real estate, then - Federal Reserve Chairman Alan Greenspan said that «a national
severe price distortion [is] most unlikely.»
However, additional reforms are necessary: In order to access the benefits of competition, to provide effective customer choice and to integrate Central European and EU energy markets, Slovakia needs to finalise the unbundling of the gas sector and the privatisation of electricity distribution, eliminate
electricity price distortions and ensure fair access to energy facilities including storage.
«As a result of which there is a
huge price distortion where individuals and retail policyholders who are otherwise not in a position to bargain are made to pay
Specifically, we investigate if transfers: 1) induce higher spending on alcohol or tobacco; 2) are fully consumed (rather than invested); 3) create dependency (reduce participation in productive activities); 4) increase fertility; 5) lead to negative community - level economic impacts (
including price distortion and inflation), and 6) are fiscally unsustainable.
Instead,
the price distortions lead to clusters of ill - conceived investments, thus setting the stage for a recession or economic bust.
The post ties in with SRSV's lecture on non-conventional monetary policies, particularly the side - effect of market addiction to low volatility, and the lecture on
price distortions, particularly the section on feedback loops.
If you place an order after regular trading hours it will be executed as soon as the market opens the following day, exactly when the likelihood of
a price distortion is highest.
When the underlying market is closed, you can't check how CFD prices compare to market prices, which could result in
price distortions.