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Countercyclical in sentence

110 examples of Countercyclical in a sentence

The faster and more robust recoveries that characterized most previous recessions reflected aggressive countercyclical monetary policy by the Fed, which cut the short-term interest rate very sharply.
The rapid deterioration of fiscal position after the crisis made any substantial countercyclical response impossible, while regulatory constraints limited the economy’s structural flexibility.
It would be far better for the German government to take the bull by the horns by defining the principles of a European economic government in such a way that both countercyclical debt policy within the Maastricht framework and the ECB’s independence are preserved.
Not surprisingly, when global recession hit in 2008, most countries had little or no “fiscal space” to implement countercyclical policy.
Tax instruments and reserve requirements that put sand in the wheels of short-term capital inflows should be combined with strong countercyclical measures, such as additional capital requirements, to slow domestic credit creation.
So the only countercyclical policy available to France is fiscal: lower tax revenue and higher spending.
And it is unclear whether the penalties for total deficits that exceed 3% of GDP would be painful enough for countries to sacrifice greater countercyclical fiscal stimulus.
They must turn to the IMF, and the IMF is more concerned with international financial stability than with enabling developing countries to pursue the countercyclical policies needed to avoid recession.
Countries that qualify ought to have access to a lender of last resort and be empowered to pursue countercyclical policies.
One reason is that the level of Italian debt did not leave much room for countercyclical fiscal policy.
The IMF's economic framework still does not provide for countercyclical fiscal policies, because the IMF remains ambivalent about the standard Keynesian prescription of stimulating an economy in a downturn.
That implies a transparent rule of law, and competent, conservative, and countercyclical macroeconomic management.
With the no-bailout rule restored, governments would have more space to pursue countercyclical policies and respond to voters’ changing priorities.
Equally important, they will create the buffers needed to offset external shocks and, as in emerging Asia and Latin America, to implement countercyclical policies that contain the extent and costs of future systemic crises.
These stronger structures should permit limited resource transfers among eurozone countries, either to carry out countercyclical policy or to supplement investment spending, particularly in economic and social infrastructure.
In this way, the new Basel rules allow for requiring banks to maintain a so-called countercyclical buffer of extra capital.
But if the idea of the countercyclical buffer is now generally accepted, what of the “nuclear option” to prick a bubble: Is it justifiable to increase interest rates in response to a credit boom, even though the inflation rate might still be below target?
The benefit of countercyclical policies is that government debt as a share of GDP falls during good times.
Moreover, unlike the West, which has used up most of its traditional countercyclical policy ammunition, China has maintained ample scope for fiscal and monetary-policy adjustments as circumstances dictate.
Perhaps the most damaging outcome of these tactics is to take countercyclical fiscal policy off the table completely.
Likewise, the IMF’s makes no compelling case for a macroprudential countercyclical approach to insurance capital.
Second, Germany insists that any slowdown should be met with greater discipline and tighter austerity, not countercyclical policies.
As the crisis hit, stronger banking systems and effective macroeconomic policies – including fiscal responsibility and low public debt, exchange-rate flexibility, and a large accumulation of international reserves – allowed Latin American countries to implement unprecedented countercyclical policies.
The problem is that governments in the region have yet to realize that countercyclical fiscal policy implies rowing against the current in both parts of the cycle: spending more when times are bad (the easy part) and spending less when times are good (the true test of virtue).
First, they can employ countercyclical macroprudential measures to dampen credit cycles and prevent excessive borrowing.
The development and implementation of the Basel III banking standards are essential to introducing countercyclical capital buffers and additional loss absorbency for these institutions.
But periphery countries without large export surpluses are not in a position to employ countercyclical policies.ampnbsp;
It is up to the IMF to find ways to finance countercyclical fiscal deficits.ampnbsp;
Countercyclical spending and tax policy are widely acceptable to experts and taxpayers alike, but deficit spending on wars is known to be a paltry way to stimulate the economy.
The result was to render the South a solid Republican bloc and leave its leaders antagonistic to all exercise of federal power except for the enforcement of contracts and competition – a hostility that notably included countercyclical macroeconomic policy.
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