Insight: Corporates hold key to recovery Nov 10, 2009
It might be heresy but what if the credit crunch turns out to be more of a supply shock than a demand shock. While markets appear to be focusing on the prospect of multi-year consumer deleveraging and weak consumption growth, it strikes us that investors risk forgetting that it is corporates, rather than consumers, that have been on the frontline of the 2009 recession. (FT.com -- Markets)
East Africa: Region to Have a Common Currency By 2012 Sep 21, 2009
"The spike in oil and commodity prices last year, for example, which initially appeared as a supply shock at the individual country level, represented economic overheating at the global scale, and domestic monetary policy tightening may not have been the most effective way to deal with this situation in our context," he said. Be the first to. (allAfrica.com)
Climate change could deepen poverty in developing countries, study finds Aug 20, 2009
A statistical analysis was used to determine grain productivity shocks that would correspond in magnitude to the climate extremes, and then the economic impact of the supply shock was determined. Future predicted extreme climate events were compared to historical agricultural productivity extremes in order to assess the likely impact on agricultural production, prices and wages. (EurekAlert!)
RBI keeps rates steady, cautions against deficit Jul 29, 2009
RBI is categorical that thereafter, the year-on-year WPI inflation will creep up even without any major supply shock. . (India Times)
Home Prices in Largest U.S. Metro Areas to Fall Through 2011, PMI Says Jul 7, 2009
The housing market has been hit by a demand shock of high unemployment and a supply shock of distressed foreclosure sales, LaVaughn Henry, senior economist at PMI, the fourth- largest U.S. mortgage insurer, said in an interview. rose to 9. (Bloomberg)
Silver-lined monsoon clouds Jun 23, 2009
6% for the week ended 6 June), any supply shock is bound to add to price pressures. It is not surprising, therefore, that the central government is drawing up contingency plans, such as supplying drought-resistant seed varieties to rain-fed regions that will be hit most acutely if the rain gods do play truant. (India Times)
* The risks of a double-dip, W-shaped recession may be growing Jun 20, 2009
Oil above US$140 a barrel was the last straw X coming on top of the housing busts and financial shocks X for the global economy, as it represented a massive supply shock for the US, Europe, Japan, China and other net importers of oil. DEFICITS. (Taipei Times, Taiwan -- Business)
Buttonwood: Credit, debt and birth pains May 15, 2009
The addition of these two great nations to the international financial system was a supply shock that put downward pressure on inflation rates. As Stephen King, an economist at HSBC, has pointed out, the result might have been a benign deflation that boosted Western living standards. (The Economist)
Prudential, ING Buy Korean Government Bonds, Bet on Central Bank Purchases Mar 23, 2009
There will be a role for the central bank to play in absorbing the supply shock, Jun of ING said in an interview today. From an asset-allocation point of view, were going in a direction where the portion of government debt is increasing. (Bloomberg -- Asia)
Public Information Notice: IMF Executive Board Concludes 2008 Article IV Consultation withBolivia Feb 9, 2009
While the earlier increase was driven partly by food inflation, external developments generated demand pressures, compounding the effects of the supply shock ... While recognizing the role of supply shocks in raising inflationary pressures, most Directors saw merit in a more active monetary policy to help speed up the decline in inflation to single digits. (IMF News)
