Sentence examples for permanent shocks from inspiring English sources

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.

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

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

First, modern macroeconomic theory predicts that both short terms and permanent shocks are relevant in explaining output fluctuations.

In consequence, in normal times output is driven by permanent shocks; real business cycle models are thus ideal in explaining the behavior of output.

Both female and male earnings, ({y_{t}^{,f}}) and ({y_{t}^{m}},) in the household are subject to permanent shocks, ({v_{t}^{,f}} )and ({v_{t}^{m}},) that are positively correlated.

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.

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 ).

On that basis, the authors find that demand shocks are relevant in the short and medium term, whereas supply shocks have a permanent impact on output and accumulate over time.