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Economic shock

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ECONOMIC SHOCK - Events that impact the economy which originate from outside it. They are unexpected an...
ECONOMIC SHOCKS - Events that impact the economy, come from outside it, and are unexpected and unpredic...

 


Economic shock
Events that impact the economy, come from outside it, and are unexpected and upredictable (e.g., Hurricane Andrew in 1991, the rise in oil prices by OPEC).

Economic Shock
An event that produces a significant change within an economy, despite occurring outside of it. Economic shocks are unpredictable and typically impact supply or demand throughout the markets.

One strand of this theory focuses on the fact that many of the market's mechanisms for distributing risk, which are critical to an economy's ability to adjust to economic shocks, are imperfect because of costly information.

To try to avoid major economic shocks, such as The Great Depression, governments make adjustments through policy changes they hope will stabilize the economy.

In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements.
Economic shock ...

In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy.
Also known as a "managed float".

changing environments that organisations face require adaptation, sometimes call for deep and rapid responses, "Change or die!" is the rallying cry among today's managers worldwide. Forces such as, nature of the workforce, technology, economic shocks, ...

See also: Shock, Banks, Expense, Hedge fund, Equilibrium

Business Economic riskEconomic stimulus package

 
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