The MSR is designed to help tackle the current supply and demand imbalance and make the system more resilient to future demand shocks
Oil, Iron ore and copper face both supply and demand shocks
, since Chinese GDP growth has declined to 1990 lows, below the Politburo GDP growth target of 7.
Once demand and supply shocks are identified, we follow Chadha, Corrado and Sun (2010) in creating a counterfactual historical series with the effects of either supply or demand shocks
Activity among the region's commodity exporters might weaken with negative external demand shocks
, such as a sharper-than-expected investment slowdown in China.
The results contradict the presumption that the SR with variable capital utilization represents true technology shocks because it is orthogonal to demand shocks
Following demand shocks
or price shocks, it usually takes three to four years to see a significant adjustment to the value of labour and capital to match the new economic environment.
2], and demand shocks
, given by the term (1 - [omega][beta]) [kappa][[iota].
The list of possible threats is long and varied: floods, earthquakes, volcanic eruptions, political unrest, sudden demand shocks
, export/import restrictions, terrorism and even economic uncertainty.
Such demand shocks
include shocks to the demand for currency (which indirectly affect the demand for bank reserves) and shocks to the demand for bank reserves.
Holding up against potential demand shocks
associated with political instability, passenger traffic of the region's airlines grew 8.
are a plausible explanation for the losses during the 2000s.
Moreover, the results show that the demand shocks
have no significant contribution in output variability.