Supply shock

(redirected from Supply side shock)

Supply shock

An event that influences production capacity and costs in an economy.

Supply Shock

Any sudden event that dramatically but (usually) temporarily increases or decreases supply for one or more goods or services. The event may result from government intervention, such as a change in money supply, or may be a random occurrence in the market. For example, a sudden discovery of oil in a field previously thought mainly dry will increase the supply of oil, which will lower the price, assuming demand remains constant. See also: Demand shock.
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slowdown in Russia; (2) the supply side shock stemming from the natural gas and energy tariff increase in July 2013; and (3) large
to the economic slowdown in Russia; (2) the supply side shock stemming
We think that the markets are just getting a little concerned over the supply side shock that could come if the matter escalated in some form or extent," said David Lennox, an analyst at Fat Prophets research house.
Supply side shock makes the prices of food items and oil volatile and since this shock prolonged, demand management and even monetary policies could not be successful in bringing the economy out of inflationary trap.
t] is contemporaneously correlated with the supply side shock, [[omega].
He reiterated that higher oil prices could dampen growth while demand for oil continued to grow, especially from China and the limited scope for extra supplies meant there was a risk of supply side shock.
BoU's Governor Emmanuel Tumusiime Mutebile, said the country is presently facing a supply side shock to agriculture which has increased food prices and may also impede real development in the current fiscal.
7% yoy in April 2012, inflation started accelerating in the 2H on a new supply side shock.
The two consecutive years of weak monsoon have highlighted the impact of such supply side shocks on the farm sector dominated by small holdings.
These factors are likely to lower inflation rates in many Arab countries, however, inflationary pressures resulted from supply side shocks in some other Arab countries could limit this declining trend.
5% according to our estimates) in the months to come would not only reflect the weak underlying inflationary pressures but also the impact of temporary supply side shocks and of a favourable statistical base effect.
Crucially, the HERM1N model allows for the treatment of both demand side shocks and supply side shocks HERMIN has been applied to Ireland (1989-1993 and 1994-1999, and for the latter period also to Portugal and Spain).