Economic Shock
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An Economic Shock is a shock to an economic system.
- Context:
- It can (often) result in an Economic Recession.
- It can range from being a Past Economic Shock to being a Future Economic Shock.
- …
- Example(s):
- a Rapid Currency Devaluation.
- the 1973 Oil Shock.
- the Wall Street Crash of 1929.
- …
- Counter-Example(s):
- an Economic Boon.
- See: Economics, Exogenous, Endogeneity (Economics), GDP, Employment, Impulse Response Function, Antifragile Economic System.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Shock_(economics) Retrieved:2014-4-1.
- In economics, a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively. Technically, it refers to an unpredictable change in exogenous factors — that is, factors unexplained by economics — which may have an impact on endogenous economic variables.
The response of economic variables, like output and employment, at the time of the shock and at subsequent times, is called an impulse response function.
- In economics, a shock is an unexpected or unpredictable event that affects an economy, either positively or negatively. Technically, it refers to an unpredictable change in exogenous factors — that is, factors unexplained by economics — which may have an impact on endogenous economic variables.
- http://www.economist.com/blogs/freeexchange/2014/03/interest-rates-and-inflation?fsrc=rss
- QUOTE: … The rich world's central banks are behaving with a dangerous complacency. Low and falling inflation will retard ongoing recoveries. Perhaps more important, this path forward leaves the rich world with virtually no cushion against future shocks. …
2013
- http://www.investopedia.com/terms/e/economic-shock.asp
- QUOTE: 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.
An economic shock may come in a variety of forms. A shock in the supply of staple commodities, such as oil, can cause prices to skyrocket, making it expensive to use for business purposes. The rapid devaluation of a currency would produce a shock for the import/export industry because a nation would have difficulty bringing in foreign products.
- QUOTE: 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.