Economic shock

Definition:

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).

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Official settlements balance (overall balance)

An overall measurement of a country's private financial and economic transactions with the rest of the world.

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