ratchet effect


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ratchet effect

n
(Economics) economics an effect that occurs when a price or wage increases as a result of temporary pressure but fails to fall back when the pressure is removed
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
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The dollar price of global commodities are pushed down, hurting the export earnings of large commodity exporters and so risking a further ratchet effect to the weakness already seen in many emerging market this year.
Such resistance constitutes one of the important aspects of the ratchet effect in the growth of government, whereby each major lurch toward greater government becomes at least in part irreversible (Higgs 1987, 57-74; 2012, 75-97).
The ERX-CR offers easier operation in confined spaces with push-button locking action which provides ratchet effect tightening and quick release.
There is a ratchet effect and the expansion of government has a permanent component.
Dr Adam Marshall, acting director general of the British Chambers of Commerce, said: "The Government's new living wage will apply a ratchet effect to all companies' pay bills, and sits alongside a raft of other high employment-related costs.
We show that these conflicts of interest create a leverage ratchet effect that can have profound impact on the dynamics of corporate leverage.
In fact, however, the scheme often generates side-effect, that is, the ratchet effect. Due to asymmetric information and lacking market insights relative to the store manager, the headquarters often sets the target on the basis of the store manger's historical performance.
Politics of disclosure / As with regulation in general, disclosure mandates have been subject to a ratchet effect. Lawmakers keep adding new ones and expanding old ones, but almost never is a disclosure pared down, much less eliminated.
Besides, structural elements and the ratchet effect may check the fall in food inflation arising from good harvest, the report adds.
"It has a ratchet effect on people working as hard as they can, to lift the whole team up.
Croft added that competition was now so intense it had a "ratchet effect" on the squad.