Sentence examples for permanent shock from inspiring English sources

If central bankers mistake a temporary rise in uncertainty for a permanent shock, they may, say, cut interest rates by more than they need to, with inflationary results.

This is in contrast to Friedman's permanent income hypothesis, which assumes that a permanent shock (either negative or positive) will result in an immediate and complete adjustment of spending.

The Expansion of Public Spending and Mass Education in Bolivia: Did the 1952 Revolution Represent a Permanent Shock?

In particular, the unconditional variance of the permanent component must increase linearly with age, with the slope given by the conditional variance of the permanent shock.

Labour productivity is (y>0) and each job is subject to an adverse permanent shock whereby productivity falls to 0 with instantaneous probability (mu ).

In other words, the deviation from the long-run equilibrium will be adjusted owing to the stationary Et. If Et is non-stationary, the deviation from the long-run equilibrium will not be adjusted, and the deviation will be a permanent shock that deviates from equilibrium.

Based on a variance decomposition analysis, Germany, Italy, and Japan's country-specific permanent shocks account for about half of their total permanent shocks.

They are also contrary to the implications of existing dynamic capital structure models that allow only for permanent shocks to cash flows.

In the first essay (co-authored with Ilya A. Strebulaev), we investigate corporate financial policies in the presence of both temporary and permanent shocks to firms' cash flows.

But the board-endorsed policy framework seems less inclined to budge.Earlier IMF papers emphasised that capital controls should be imposed only in the face of temporary surges in inflows, arguing that the exchange rate should adjust when it came to permanent shocks.

Besides, the permanent shocks have larger impacts on output, in comparison to a univariate model.