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misallocated
verb
Past of misallocate
Exact(36)
Some lay the housing boom of 2003-06 athehe Fed's door, others criticise the central bank's tendency to slash rates whenever the financial markets wobbled.Was capital misallocated?
Capital is misallocated into wasteful areas.
New York's insurance department and attorney-general say that during the 1980s and 1990s it deliberately misallocated premiums for workers' compensation to general revenue, thus avoiding a special tax to cover insolvent insurers.
If the rate is held at an artificially low level for too long, the danger is that capital may be misallocated.
And while crises often expose misallocated resources too much capital and labour in housing, for example—it takes time for them to be redeployed.There is, however, another overlooked reason why growth is so feeble after a crisis: the political response.
But it would be one of the biggest.Because China has misallocated housing, some parts of the country remain overcrowded while others remain empty.
Similar(24)
The fund said that taxpayer-funded rescues during bad times, leaving shareholders and employees to gain during good times, "misallocates resources".Congressmen investigating the banking crisis heard testimony about the downfall of Lehman Brothers.
Governments could hardly misallocate resources that would otherwise be unemployed.
As a consequence China is misallocating capital on a grand scale.Much of the investment is financed by bank loans and other kinds of debt.
Just as with normal consumer-price inflation, asset-price inflation can misallocate resources in the economy by distorting price signals.
This suggests that people misallocate their efforts, fretting over an unattended lamp (at 100 watts) while neglecting the energy they could save by nudging their washer settings from "hot" to "warm" (4,000 watt-hours for each load of laundry).A quirk of human psychology could help to explain these persistent underestimates.
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