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. Investopedia Says:
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 very costly to use it for business purposes. The rapid devaluation of a currency would produce a shock for the import-export industry, as a nation would have great difficulty bringing in foreign products. Related Terms:
Demand Shock
Devaluation
Equilibrium
Payment Shock
Supply Shock |