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Easing in sentence

407 examples of Easing in a sentence

The Bank of England and the US Federal Reserve injected huge amounts of cash into their economies through “quantitative easing” (QE) – massive purchases of long-term government and corporate securities.
When it recently fell into technical deflation, the European Central Bank finally pulled the trigger on aggressive easing and launched a combination of quantitative easing (including sovereign-bond purchases) and negative policy rates.
The financial impact was immediate: in anticipation of monetary easing, and after it began, the euro fell sharply, bond yields in the eurozone’s core and periphery fell to very low levels, and stock markets started to rally robustly.
The ECB’s easing of credit is effectively subsidizing bank lending.
By easing Japan’s longstanding, self-imposed ban on arms exports, boosting defense spending, and asserting its right to exercise “collective self-defense,” the government has opened the path for Japan to collaborate more actively with friendly countries and to pursue broader overseas peacekeeping missions.
The effect of quantitative easing on exchange rates between the dollar and the floating-rate currencies is a predictable result of the Fed’s plan to increase the supply of dollars.
In particular, since the European Central Bank has clearly rejected quantitative easing, investors will want to buy euro bonds issued by Germany and other European countries that are not in danger of default.
Moreover, many central banks’ balance sheets have expanded to record levels, although in different ways and for different rationales – further underscoring the experimental character of the monetary easing now underway.
Yet it can also be argued that each cycle of monetary easing culminated in a credit-driven “boom and bust” that then had to be met by another cycle of easing.
Here, the European Union should clearly signal its readiness to take the lead in easing and lifting restrictions on Iran, though this obviously must be done in close coordination with Europe’s partners.
Both also face major price distortions, owing to quantitative easing by monetary policymakers, which has led to negative real interest rates.
In Europe and Japan, by contrast, monetary conditions will remain loose, as central banks continue to support economic growth with zero interest rates and quantitative easing (QE).
A cut in policy rates or “quantitative easing” by another name will do nothing to enhance the troubled southern European economies’ competitiveness.
But while some commentatorsseem to presume that slower growth calls for monetary easing, protectionist measures also increase prices, which has the opposite implication for monetary policy.
China, Asia, and the world would get a new resource and food-supply base, easing emerging shortages.
In fact, there is still a worldwide downward draft on interest rates, with the ECB and the Bank of Japan still very much in easing mode, as are many smaller central banks.
At the same time, if growth slows significantly, the US Federal Reserve will undoubtedly respond with another round of quantitative easing – QE3 by another name.
But just as fiscal policy was being tightened when cyclical economic conditions seemed to call for easing, it is now being eased when conditions seem to call for tightening.
When it comes to the latter, European Central Bank President Mario Draghi’s proposals in August – expanded monetary easing, structural reforms (particularly in France and Italy), and some fiscal expansion by countries like Germany – provide a useful framework to be supplemented with concrete measures.
Business leaders believe that the government’s proposals for easing redundancy rules are not bold enough, while trade unions view the reforms as being underfunded.
The Easy Money ContagionJACKSON HOLE, WYOMING – To consider the actions taken by the world’s major central banks in the past month is to invite an essential question: when – and where – will all this monetary easing end?
Yet the recent spate of central bank actions and their timing (notwithstanding considerable diversity in terms of domestic economic conditions) suggests that interest-rate cuts and nonconventional forms of easing, if not competitive, are certainly contagious.
But, despite the Fed’s impressive commitment to aggressive monetary easing, its effects on the real economy and on US equities could well be smaller and more fleeting than those of previous QE rounds.
In both 2010 and 2011, leading economic indicators showed that the first-half slowdown had bottomed out, and that growth was already accelerating before the announcement of monetary easing.
First, inflation is likely to remain very low, with many more years of high unemployment bearing down on prices and the European Central Bank unwilling to pursue the aggressive monetary easing needed to raise them (making it difficult to reduce the real value of the country’s debt burden).
Second, they overestimated the extent to which quantitative easing (QE) by the monetary authorities – that is, printing money – could counterbalance fiscal tightening.
Merkel now must step in to save Greece as part of the eurozone – and that means easing the country’s debt burden.
During the period of monetary easing that followed the 2008 financial crisis, the Fed cut the federal funds rate to just 0.15% and declared that it would remain low for a long period of time.
The wave of corporate investment that was supposed to be unleashed by a combination of fiscal restraint (to rein in government debt) and monetary easing (to generate ultra-low interest rates) has never materialized.
Specifically, if governments were able to treat infrastructure investment just as companies treat capital expenditure – as balance-sheet assets that are depreciated over their lifecycle, rather than as one-off expenses – such investment could then be exempted from Europe’s deficit rules without opening the door to profligate spending or easing the pressure for credible plans for long-term fiscal-consolidation.
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