Economic shock

(redirected from Economic Shocks)

Economic shock

Events that impact the economy which originate from outside it. They are unexpected and unpredictable (e.g., Hurricane Andrew in 1991, the rise in oil prices by OPEC).

Economic Shock

An event that can cause a sudden, drastic change in an economy. For example, if it were suddenly discovered that there is no more oil in the world, this would cause economic shock, causing prices to skyrocket. Likewise, if the technology was developed to make oil obsolete and was announced with no notice, it would cause an economic shock in the other direction. An economic shock can be either positive or negative; likewise, it can be temporary or permanent. See also: Price in.
References in periodicals archive ?
Nevertheless, the rise in public debt over the last decade has eroded the sovereign's buffer against economic shocks.
The IMF product has been Kenya's key component in weathering economic shocks since March 2016.
The firm said, 'Elevated and rising private leverage represents a negative credit development for these banks, because this undermines the resilience of borrowers to economic shocks, and constitutes a structural banking system vulnerability.
The Eesti Pank research award for 2017 has gone to Kerli Lille for her research into how capital controls affect the transmission of global economic shocks to local markets.
French President Emmanuel Macronon Thursday backed Germany's idea of a European Monetary Fund (EMF) to counter economic shocks in eurozone member states but stressed the ultimate goal of deeper integration should remain a eurozone budget.
One mechanism for this decline could be how the age difference between spouses affects the couple's ability to respond to negative economic shocks, such as a job loss, McKinnish said.
ABERDEEN has weathered economic shocks before but this one is entirely of the Tory Government's making.
The Finance Ministry under Pravin Gordhan was described as the 'fortress' able to withstand economic shocks and find ways to strategise out of crisis.
He said that just three years ago, Pakistan's economy was running out of steam and resources, however with the oil windfall and an improving external sentiment, Pakistan was able to triple its foreign reserves buffer, through SBP foreign exchange purchases and foreign borrowing which has much strengthened Pakistan's shield against economic shocks.
The IMF said at the time that the money should be used only in case of unforeseen economic shocks, yet the government drew the money ahead of the early parliamentary election.
In the plan, Fine Gael also promised to set up a "Contingency and Stability Reserve" in three years' time as an insurance policy against future economic shocks.
He said Jordan had faced hardships and major economic shocks in recent years resulting from the disruptions in supplies of Egyptian gas, the regional conflicts and the global economic slowdown.