Germany s Five Shocks

Adjustment, support to trade and trade related shocks

These shocks were naturally beyond the ECB s control. The policy response, however, required preventing these shocks from becoming entrenched in medium to long term inflation expectations.

So it was a series of five painful shocks.

And they gave them a series of painful electric shocks.

Debt sustainability is also affected by vulnerability to external shocks.

Half of them are told that they're being given the shocks by somebody in another room, but the person in the other room doesn't know they're giving them shocks.

This external dependence increases their vulnerability to external economic threats and shocks.

That Committee rightly considered lack of economic diversification as an indicator of the exposure to shocks and recognized that small countries tended to be more vulnerable to external shocks than large ones (E 2005 33, paras.

Globalization has increased the vulnerability of the developing and transition economies to adverse external shocks.

Moreover, energy and food price shocks can be both large and largely unpredictable, while the speed of price changes tends to increase with big shocks. Most forecasting models used by central banks therefore put a large weight on recent inflation.

Successful coordination in fiscal and monetary affairs would enable the region to manage external shocks successfully.

It also helps to shield them from shocks and volatilities in the global economic and financial environment.

Asian economies deepening trade and financial integration has left them increasingly vulnerable to growth shocks from China, with exporters of commodities and capital goods especially vulnerable. In fact, a study by the Asian Development Bank shows that Chinese shocks have larger and more persistent effects on individual Asian economies output than do global shocks, as a 1 increase in China s GDP raised GDP in emerging East Asia by about 0.6 .

However, economic growth and expectations are constantly threatened by inappropriate macroeconomic policies, poor economic management and external shocks.

The current shocks to GDP have led to falling levels of per capita income and brought widespread poverty.

But this overlooked a crucial feature of monetary unions free capital mobility and elimination of currency risk indispensable attributes of a currency area could be (and were) the source of asymmetric shocks. Currency unions, in other words, must worry about endogenous as much as exogenous shocks.

Firms and consumers reacted to this year s shocks by temporarily slowing consumption, capital spending, and job creation. As long as the shocks don t worsen (and as some become less acute), confidence and growth will recover in the second half of the year, and stock markets will rally again.

We have increased our financing to the countries most heavily affected by food and fuel shocks. And we stand ready to provide additional support including under a new financing mechanism for countries hit by exogenous shocks to help those whom the global financial crisis has affected most severely.

In addition, shocks such as the tsunami disaster and avian influenza can have a significant impact on short term growth.

Nevertheless, they still face substantial difficulties in participating in services trade, and their exports are particularly vulnerable to external shocks.

Poor people tend to be more exposed to threats and are less able to absorb the shocks inherent in disasters.

Systemic risk is intrinsic to globalization. Greater openness and integration necessarily increase the potential for cascading crises and amplification of shocks.

Another, more plausible theory is that over the past fifteen years there have been various external challenges or shocks that have hit the country simultaneously. Rigid as it was, with an extensive welfare system and an over regulated labor market, Germany was unable to react to these shocks and ran into trouble.

They are facing the argument that the United States monetary union works much better because there is a large federal budget to smooth the impact of asymmetric shocks that is, shocks to individual states. The eurozone, it is claimed, should have its own budget to provide similarly automatic insurance to its members.

Sputnik quickly became one of the three great shocks to hit America historians say the equal of Pearl Harbor or 9 11.

I moved to sounds, electrical shocks I even had a pain suit that I could get people to feel much more pain.

Remittances from workers are a major, stable source of capital inflows for many developing countries, but they are nevertheless subject to shocks.

Financial and other macroeconomic restructuring initiatives therefore need to go hand in hand with measures to protect the economy from future shocks.

He was also subjected to electric shocks by being forced to urinate in hot water into which electric cables had been plunged.

The author received letters from her son which described the treatment he suffered, which included being beaten and subjected to electric shocks.

If economic structures were dissimilar, then the second criterion became critical Were arrangements in place to adjust to asymmetric shocks? The two key arrangements that most economists emphasized were fiscal transfers, which could cushion shocks in badly affected regions, and labor mobility, which would allow workers from such regions to move to less affected ones.

Overall, the Canadian economy performed solidly, with sustained economic growth, low and stable inflation and interest rates, and improved resilience to economic shocks.

However, in both cases improving economic trends had begun in the early 1980s and both avoided the shocks of more conventional adjustment programmes.

Many countries therefore view the development of local currency bond markets to be an important policy priority that reduces vulnerability to external shocks.

The Government introduced the Strategic Country Programme 2002 03 aimed at diversifying the economy and preparing it to reduce vulnerability to external shocks.

H. Implications of macroeconomic policy, external shocks and social protection systems for poverty, inequality and social vulnerability in Latin America and the Caribbean

Because the euro zone is not an optimal currency area, it needs tools to deal with so called asymmetric shocks shocks that affect some members more than others. But it lacks those tools, especially a Treasury with powers to tax and borrow, and a central bank that can act as lender of last resort to its member banks.

And look at this whole range of cycle based innovations cycle that's a sprayer, cycle that generates energy from the shocks on the road.

Political instability and shocks to GDP in both Iraq and Palestine have, over time, led to massive unemployment, deteriorating living standards and widespread poverty.

We have to invest in persistence, in the ability of social systems and ecological systems to withstand shocks and still remain in that desired cup.

We welcome the proposal to ease supply side constraints and commodity price shocks in order to take the fullest possible advantage of increased market access.

In recognition of these concerns, negotiating partners needed to seek to extend adequate transitory adjustment support measures to cushion developing countries from anticipated trade shocks.

Oil prices are now running well above 50 a barrel, partly owing to short run supply shocks, such as the Iraq conflict, Nigerian labor disputes, the conflict between Yukos Oil and the Russian government, and Florida's recent hurricanes. Oil prices may fall once these shocks dissipate, but speculative effects could keep them relatively high, weakening the world economy and depressing stock markets.

The irony here is that the impetus toward currency union was partly a result of the recognition of asymmetries. Thus, in the aftermath of the sterling and lira devaluations of the early 1990 s, with their resulting adverse trade shocks to France and Germany, the lesson that was drawn was that a single currency was needed to prevent such disparate shocks from recurring.