Monetary
in sentence
5081 examples of Monetary in a sentence
But, with most economies in the Middle East and Asia in much stronger shape than the US and inflation already climbing sharply in most emerging-market countries, aggressive
monetary
stimulus is the last thing they need right now.
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.
Beginning with the sharp monetary-policy easing that occurred following the 1987 stock-market crash,
monetary
policy has been used aggressively in the face of every economic downturn (or even anticipated downturn) ever since – in 1991, 1998, 2001, and, with a vengeance, following the events of 2007.
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.
With leverage and speculation increasing on a cumulative basis, this whole process was bound to end with
monetary
policy losing its effectiveness, and the economy suffering under the weight of imbalances (or “headwinds”) built up over the course of many years.
Later still, Hyman Minsky contended that credit creation in a fiat-based
monetary
economy made economic crises inevitable.
The
monetary
policies pursued by central banks since 2007 have essentially been “more of the same.”
But it is increasingly clear that ultra-easy
monetary
policy is impeding the necessary process of deleveraging, threatening the “independence” of central banks, raising asset prices (especially for bonds) to unsustainable levels, and encouraging governments to resist making needed policy changes.
The call for “outright
monetary
financing” involves raising government deficits still further and financing them through a permanent increase in base money issued by central banks.
First of all, Bernanke did not propose any further easing of
monetary
policy to support the stalled recovery – or, rather, the non-recovery.
Corporatism is simply incompatible with a
monetary
union.
Abe is doing what many economists (including me) have been calling for in the US and Europe: a comprehensive program entailing monetary, fiscal, and structural policies.
Japan’s
monetary
policy, one hopes, will focus on such critical issues.
The
monetary
union’s distinctive feature is the absence of a common state, despite the single currency.
When a country gives up its
monetary
sovereignty, its banks are effectively borrowing in a foreign currency, making them exceptionally vulnerable to liquidity shocks, like that which sparked turmoil in Europe’s banking system in 2010-2011.
While Draghi’s promise, embodied by the ECB’s “outright
monetary
transactions” program – as well as its long-term refinancing operation and emergency liquidity assistance program – has bought time and lowered yields, the eurozone’s banking crisis persists.
In particular, giving people
monetary
incentives may work in market-like situations.
Both also face major price distortions, owing to quantitative easing by
monetary
policymakers, which has led to negative real interest rates.
How they use monetary, fiscal, structural, institutional, and regulatory policies may differ, but each will ultimately be judged by how close he comes to achieving that goal.
There’s a good chance that the
monetary
contraction will outweigh the fiscal stimulus, curbing the Obama growth spurt currently underway.
Another possibility is that the world's major central banks are actually more concerned about real growth and employment, and are using low inflation rates as an excuse to maintain exceptionally generous
monetary
conditions.
And that has created a growing risk of serious adverse effects on the real economy when
monetary
policy normalizes and asset prices correct.
Over the past 25 years in Europe, unemployment rose as
monetary
policy was tightened and interest rates were raised to fight inflation.
So, for 20 years it has seemed to me that Western Europe’s underlying political equilibrium – corporatist bargaining and ample social insurance, on the one hand, and tight
monetary
policies, on the other – must crack.
Europe’s central bankers fear that their political masters will order them to loosen
monetary
policy, that the structural reforms needed to free up aggregate supply will not be forthcoming, and that the result will be a return to the inflation of the 1970’s.
Of course, these fears are accompanied by the hope that structural reforms and
monetary
expansion work in harmony, boosting employment and output without raising inflation by much.
But the reality is that steps toward looser
monetary
policies are non-existent – especially with the fledgling European Central Bank anxious to establish its inflation-fighting credibility – and that steps toward structural reforms are half-hearted, hesitant, and small.
Europe needs a
monetary
policy that views aiding employment growth in northern Europe as more important than continental price stability.
There will, after all be inflation in southern and eastern Europe – there must be, for as regions develop and industrialize their terms of trade must improve, and under a
monetary
union regional inflation is how this can happen.
If that happens, the ECB may well be compelled to initiate large-scale purchases of eurozone government bonds through its so-called “outright
monetary
transactions” scheme – a plan that many German policymakers and economists staunchly oppose.
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