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Deflationary in sentence

255 examples of Deflationary in a sentence

And that period followed a three-year period, starting in 2007, in which the Fed massively understated downside deflationary risks.
Much of this debt accumulation was driven by efforts to support economic growth in the face of deflationary headwinds after the 2008 crisis.
This deflationary tendency will create serious economic problems, which do not necessarily result from deflation as such, but may stem from a natural resistance to deflation.
Thus, deflationary pressure will to some extent result in downward quantity adjustments, which will deepen the real crisis.
Not inflation, but a Japanese-type period of deflationary pressure with ever increasing public debt is the real risk that the world will be facing for years to come.
In 1931, after Britain and some two dozen other countries suspended gold convertibility and allowed their currencies to depreciate, countries that stuck to the gold standard found themselves in a deflationary vice.
In the deflationary 1930’s, the most important way that countries could subdue protectionist pressure was to use monetary policy actively to push up the price level and stimulate economic recovery.
Second, the profits and earnings of corporations and financial institutions will not rebound as fast as the consensus predicts, as weak economic growth, deflationary pressures, and surging defaults on corporate bonds will limit firms’ pricing power and keep profit margins low.
The idea is that, by monetizing the fiscal deficit, the central bank helps the government to finance growth-enhancing investments in, say, infrastructure, while providing the liquidity needed to counter deflationary forces.
Today’s global economy bears striking similarities to the immediate post-war period: high unemployment, high and rising debt levels, and a global shortage of aggregate demand are constraining growth and generating deflationary pressures.
And, though unconventional measures have reduced financial instability, their effectiveness in countering widespread deflationary pressures or restoring growth remains dubious.
But if it manages to address the most urgent among them – downside deflationary risks – its much-discussed debt challenge will become far more manageable.
But, given high unemployment in Europe and spare capacity in China, plus the persistent deflationary pressures from technology and global competition, the dangers of overheating are years away.
But a responsible central bank should not cater to irrational fears of inflation in what is in fact a deflationary environment, just as it is not an independent central bank’s role to tighten the thumbscrews for fiscal and structural reform.
But if its leaders are worried about the impact on its reputation of embracing unconventional policy, they should pause and reflect on the much greater damage that would follow from allowing the economy to slip into a deflationary trap from which it would be difficult, if not impossible, to escape.
Further falls in commodity prices – already down 30% from their summer peak – will add to these deflationary pressures.
If the deficits are monetized by central banks, inflation will follow the short-term deflationary pressures; if they are financed by debt, the long-term solvency of some governments may be at stake unless medium-term fiscal discipline is restored.
In the past, gold had been the anchor of monetary stability and financial discipline, even if it was deflationary.
Moreover, the US and China – indeed, the entire global economy – are suffering from weak aggregate demand, which is creating deflationary pressures.
The Chinese leadership was right to give precedence to economic growth over structural reforms, because structural reforms, when combined with fiscal austerity, push economies into a deflationary tailspin.
After spending the decade since the financial crisis obsessing about secular stagnation and falling prices, investors and Federal Reserve officials will require many months or even years of consistent and incontrovertible evidence of inflation and higher growth to be convinced that deflationary conditions have genuinely reversed.
The second cost is implicit, but potentially far more substantial: because sterilization bonds are forced savings (and deflationary by definition), they absorb the potential investment and consumption implied by today’s trade surplus.
And, as we have seen in Greece, implementing structural reforms without accommodating demand impulses could lead to a deflationary slump or worse, thereby undermining the public’s willingness to continue on the reform path.
That is why Bank of Japan Governor Haruhiko Kuroda should respond accordingly if the tax increase has a deflationary impact.
It is caught in a deflationary spiral, with falling prices and increased anxiety over the economy’s prospects reinforcing each other.
To overcome its balance-sheet recession, the eurozone needs to clean up its banks, reduce the crushing overhang of mostly private debt, redress the huge shortfall in investment, eliminate barriers to enterprise, and tackle the deflationary drag of German mercantilism.
While we do not know what might have happened were policies different, one can easily imagine that, absent quantitative easing in the United States, Europe, and Japan, those economies would have been mired in a deflationary post-crisis landscape akin to that of the 1930s.
Beyond advocating higher minimum wages, some are calling for “reverse income policies,” with governments imposing across-the-board wage increases on private employers – a move that would drive up prices and defeat deflationary expectations.
Policy as a whole over the entire euro zone is too deflationary.
Indeed, the post-crisis experience of quantitative easing has highlighted monetary policy's relative powerlessness to offset the global deflationary trend.
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