Deflationary
in sentence
255 examples of Deflationary in a sentence
It's a
deflationary
force, if not handled right.
But disciplined and moderate monetary finance, by combating
deflationary
dangers, might sometimes help.
LONDON – As 2015 begins, the reality of deficient global demand and
deflationary
risks in the world’s major economies is starkly apparent.
As a result, while central bankers before the 2008 financial crisis viewed themselves as heroes in a battle against inflation, they increasingly found themselves offsetting structural
deflationary
pressures by setting interest rates low enough to stimulate credit booms.
The analogy popularized by the great monetarist economist Milton Friedman was that the central bank could always deal with
deflationary
problems by dropping money from a helicopter.
Of course, a
deflationary
spiral is possible, and its consequences could be serious.
Developed-economy central banks should overcome their irrational fear of a
deflationary
spiral, and stop trying desperately to stimulate demand.
The global implications of lower emerging-market currencies are also likely to be
deflationary.
That would reinforce the
deflationary
pressure from globalization for years to come.
First, in countries where early fiscal austerity is necessary to prevent a fiscal crisis, monetary policy should be much easier – via lower policy rates and more quantitative easing – to compensate for the recessionary and
deflationary
effects of fiscal tightening.
Finally, the International Monetary Fund, the European Union, and other multilateral institutions should provide generous lender-of-last-resort support in order to prevent a severe
deflationary
recession in countries that need private and public deleveraging.
Failure to implement such coordinated policy measures – to sustain global aggregate demand at a time when
deflationary
trends are still severe in advanced economies – could lead to a very dangerous and damaging double-dip recession in advanced economies.
For the past three and a half decades, the principal shocks have not been inflationary, like the 1973 and 1979 oil crises, but rather deflationary, like the US savings and loan crisis in the 1980s and 1990s, the 1997 Asian crisis, the 2000 dot-com bust, the terrorist attacks of September 11, 2001, the 2007 subprime collapse that began in the US, and the 2010 European debt crash.
Given huge declines in industrial profit growth (from 12.2% in 2013 to 3.3% last year) and in local-government revenues from land sales (which fell by 37% in 2014), there is considerable anxiety that today's
deflationary
cycle could trigger corporate and local-government debt crises.
If it succeeds, at least 15% of China’s national income will gush out of the country, adding to the
deflationary
forces that are breeding political monsters in Europe and in the US.
Global greenbacks would offset the
deflationary
bias in today's arrangements that results from the fact that part of the income set aside as reserves never gets translated into global aggregate demand.
That doctrine, by imposing austerity in a period of rising unemployment, threatens to push the eurozone into a vicious
deflationary
debt spiral from which it will be difficult to escape.
The policy mix remains too pro-cyclical, causing the
deflationary
impact of fiscal consolidation to drown out the benefits of structural reform.
But a far better approach than supply-side consolidation is aggressive demand-side expansion, which would counter
deflationary
pressures.
In today’s low-inflation or outright
deflationary
environment, central banks may need negative policy rates (this is the novelty part) to produce negative real rates.
In today’s
deflationary
environment, the reverse has happened.
The weakening of the euro and the ECB’s aggressive measures may even stop the
deflationary
pressure later this year.
If the US tips from mild recession into deep recession, the global
deflationary
implications will cancel out some of the inflationary pressures the world is facing.
True, no great war has erupted, and we have more or less avoided the mistakes of the Great Depression, which led in the 1930s to greater protectionism, bank failures, severe austerity, and a
deflationary
environment.
The most widely cited example of a
deflationary
economy is Japan.
In a similar vein, the Reserve Bank of New Zealand cut its policy rate 25 basis points, to 2%, to counter
deflationary
forces and restrain the appreciation of the New Zealand dollar.
After all, because financial crises and deep recessions are deflationary, they, too, jeopardize price stability.
An appropriately sized helicopter-money program might also raise inflation in a measured way, heading off the possibility of a Japanese-style
deflationary
trap.
European economies, including Germany, are suffering, as the sanctions’ depressive impact aggravates the recessionary and
deflationary
forces that are already at work.
Theirs is a nationalist international – a classic creature of a
deflationary
period – united by contempt for liberal democracy and the ability to mobilize those who would crush it.
Next
Related words
Would
Pressures
Economy
Global
Pressure
Growth
Forces
Rates
Inflation
Fiscal
Which
Policy
Economies
Economic
Demand
Monetary
Interest
Countries
Policies
Central