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Monetary in sentence

5081 examples of Monetary in a sentence

While the system was effectively eliminated in 1971, the US dollar’s central role in the international monetary system has remained intact – a reality that many countries are increasingly unwilling to accept.
According to the Belgian economist Robert Triffin, an international monetary system based on a national currency is inherently unstable, owing to the resulting tensions among the inevitably divergent interests of the issuing country and the international system as a whole.
Following the creation of SDRs in 1969, IMF members committed to make them “the principle reserve asset in the international monetary system,” as stated in the Articles of Agreement.
This has prompted many – including People’s Bank of China Governor Zhou Xiaochuan; the United Nations-backed Stiglitz Commission; the Palais-Royal Initiative, led by former IMF Managing Director Michel Camdessus; and the Triffin International Foundation – to call for changes to the international monetary system.
Just as the Bretton Woods framework restored order to the global economy after WWII, a new monetary framework, underpinned by a truly international currency, could strengthen much-needed economic and financial stability.
For example, Italian politicians, who, given Italy’s recent dismal economic performance, would seem the least qualified to offer the ECB advice on monetary policy, are nonetheless advocating interest-rate cuts.
Pressures are mounting on the ECB to raise interest rates – and Berlusconi and Co.’s attacks are as much as an attempt to forestall future rate hikes as to get the ECB to loosen its monetary policy.
True, there is no inflation problem in the short run, but the ECB’s monetary policy focuses on the medium term.
Meanwhile, in Germany, the elections this September may have surprising consequences for ECB monetary policy.
Since fiscal room for maneuver is severely restricted in many economies, and expansionary monetary policies have reached their limits, addressing the global crisis effectively requires global cooperation – by governments, businesses, and employees.
The financial crisis ushered in a new source of downward pressure on interest rates, as monetary policy turned emphatically accommodative.
When Europe and the United States challenged this mercantilist approach with the 1985 Plaza Accord, the Bank of Japan countered with aggressive monetary easing that fueled massive asset and credit bubbles.
Despite the abject failure of Japan’s approach, the rest of the world remains committed to using monetary policy to cure structural ailments.
The paper’s central premise was that Japan’s monetary and fiscal authorities had erred mainly by acting too timidly.
But fear not, claim advocates of unconventional monetary policy.
Unsurprisingly, the wealth effects of monetary easing worked largely for the wealthy, among whom the bulk of equity holdings are concentrated.
They are all caught between the problems of the present and the mistakes of the past: in Europe, between institutions designed to avoid inflation when the problem is growth and employment; in America, between massive household and government debt and the demands of fiscal and monetary policy; and everywhere, between America’s failure to use the world’s scarce natural resources wisely and its failure to achieve peace and stability in the Middle East.
Given the clear benefits of nimble monetary policy, central bankers need to open their eyes to the possibilities that flexibility affords.
The rule of thumb for monetary policymakers has long been that if inflation is below official target ranges, short-term interest rates should be set at a level that spurs spending and investment.
But in too many cases, those scripts have led us astray, because they assume that monetary policy has a measurable and foreseeable impact on demand and inflation.
It’s easy to see why, despite the data, predetermined formulas are attractive to monetary policymakers.
Keynes never tired of arguing that monetary policy becomes ineffective if uncertainty is sufficient to destabilize the expectations of consumers and investors.
In addition to inflationary pressure, the Fed’s monetary policy must also take into account employment statistics, growth data, and the stability of financial markets.
Central banks (not to mention lawmakers), with their strong attachment to neo-Keynesian theory, are ignoring a major lesson from decades of monetary-policy experimentation: the impact of monetary policy cannot be predicted with a high degree of certainty or accuracy.
If central banks keep missing these rather narrow marks (“below, but close to 2%”), they end up in an expectations trap, whereby markets expect them to dispense ever higher doses of monetary medicine in a frantic attempt to reach their target.
Clearly, such monetary policies create soaring costs and risks for the economy.
A new and more realistic monetary paradigm would discard overly rigid rules that embody the fallacy that monetary policy is always effective.
It would give central banks more room to incorporate the risks and costs of monetary policies.
When monetary support is finally withdrawn, this will be an indicator of the economic recovery’s ability to withstand higher interest rates.
Because it normally takes a year or more for the full effects of monetary policy to be felt, central banks need to act preemptively, not reactively.
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