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Deflationary in sentence

255 examples of Deflationary in a sentence

Unless Italy enacts radical reforms to address its sclerotic growth, it is hard to see how it could ever have a viable future in a dysfunctional monetary union dominated by a mercantilist, deflationary Germany.
This poor performance can only exacerbate the European Central Bank’s deflationary concerns.
The deflationary impact of internal devaluation is compounded by the rule, reinforced in the 2012 “fiscal compact,” that eurozone countries are wholly responsible for their own debts and thus must adopt strict budgetary discipline.
As the private sector purchases more of that debt, demand for goods and services falls, creating deflationary pressure.
Globally, the asymmetric adjustment of creditor and debtor economies has exacerbated this recessionary and deflationary spiral.
But almost all non-Chinese economists anticipated a significant slowdown, which would intensify deflationary pressures worldwide.
Inflation rates, now well below the ECB’s 2% annual target, are in the deflationary danger zone.
This more challenging scenario of anemic recovery undermines hopes for a V-shaped recovery, as low growth and deflationary pressures constrain earnings and profit margins, and as unemployment rates above 10% in most advanced economies cause financial shocks to re-emerge, owing to mounting losses for banks’ and financial institutions’ portfolios of loans and toxic assets.
But some of this increase is driven by more worrisome factors: the effects of large budget deficits and debt on sovereign risk, and thus on real interest rates; and concerns that the incentive to monetize these large deficits will lead to high inflation after the global economy recovers in 2010-11 and deflationary forces abate.
The European Union’s institutional design amplifies the voices of those interests pushing for policies that have now set Europe on the deflationary road, thus all but guaranteeing lost decades during which the EU will fail to deliver growth and prosperity.
But use of this tool is constrained by the wide discrepancies among individual countries’ appetite for inflationary or deflationary price levels.
Following the 1929 stock market crash, Europe was hit by a massive deflationary shock.
Today, Europe has been hit again by a massive deflationary shock.
In Golden Fetters: The Gold Standard and the Great Depression, published in 1992, I argued that the deflationary engine that was the gold standard was a key cause of the 1930’s depression, and that abandoning it opened the door to recovery.
As a result, China's downturn has intensified the deflationary headwinds holding back global recovery, playing a major role (along with increased supply) in driving down oil prices.
But, as the investment-led phase of its development ends, a significant growth slowdown is certain – and will inevitably intensify deflationary forces in the world economy.
Indeed, the deflationary spiral, particularly in Greece and Spain, is causing output to contract so rapidly that further spending cuts and tax increases are not reducing budget deficits and public debt relative to GDP.
As such, the PBoC will need to maintain counter-cyclical policies in order to avoid a deflationary spiral.
The Bank of Japan’s Haruhiko Kuroda and the European Central Bank’s Mario Draghi maintain such policies to this day, in order to stimulate economic activity and counter deflationary pressures.
We also agree on the need for a radical change to the financial-policy regime to promote stability and reduce the risk of future crises But, while White raises valid issues concerning the separate issue of how to respond to the post-crisis mess of debt overhang, deleveraging, and deflationary pressures, he does not undermine my case for considering the option of using OMF to fund increased fiscal deficits.
And Friedman set out in 1948 a very clear case for using OMF to stimulate an economy when appropriate: “another reason sometimes given for issuing interest-bearing securities is that in a period of unemployment it is less deflationary to issue securities than to levy taxes.
But it is still less deflationary to issue money.”
Consider the hypothetical depiction of a deflationary economy in the table below.
Put simply, in deflationary economies, where people and the state bear significant debts, only increases in money (as opposed to real) income are cause for celebration.
Indeed, much of the European periphery is caught in a deflationary mire, with money incomes falling, debts skyrocketing (as a share of money incomes), and banks drowning in non-performing loans that prevent them from lending even to profitable enterprises.
But in today’s deflationary environment, typical monetary expansion alone can do little to help the real economy, because the money either remains idle or fuels asset bubbles and capital outflows.
The ECB, in particular, defends its low-interest-rate policy by citing perceived deflationary risks or below-target inflation.
By pumping in whatever liquidity the financial sector needs to alleviate the credit crunch, the ECB is effectively maintaining a deflationary bias for the financial sector, whereas it has announced an inflationary bias for the rest of the economy.
China’s economy is overheating now, but, over time, its current overinvestment will prove deflationary both domestically and globally.
But overcapacity will lead inevitably to serious deflationary pressures, starting with the manufacturing and real-estate sectors.
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