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Monetary in sentence

5081 examples of Monetary in a sentence

Sympathy for GreenspanBERKELEY – In the circles in which I travel, there is near-universal consensus that America’s monetary authorities made three serious mistakes that contributed to and exacerbated the financial crisis.
Led by US Federal Reserve Board Chairman Ben Bernanke, an economic historian of the Great Depression, they remembered the ideas of John Maynard Keynes and loosened monetary and fiscal policy to avoid the worst.
I have been arguing for four years that our business-cycle problems call for more aggressively expansionary monetary and fiscal policies, and that our biggest problems would quickly melt away were such policies to be adopted.
Yet the IMF imposed even tougher conditions on Asia than it has on Greece, including fiscal austerity, monetary tightening, and financial restructuring.
Once confidence began to recover and market conditions stabilized, the East Asian economies shifted their monetary and fiscal policies toward expansion and embraced large-scale exchange-rate depreciation – efforts that enhanced their export competitiveness.
But, given the combination of massive monetary support, a now-neutral fiscal stance, a steep fall in oil prices, and a depreciated euro, it is the least we could expect, and it will bring per capita GDP back only to its 2008 level.
Participation in a monetary union is a demanding endeavor that requires policy agility among its participating countries, as well as a sense of common purpose.
Governments should know precisely how Draghi and his colleagues assess the potential for growth and employment and how this will affect monetary policy.
To achieve any of them they usually seek to nudge inflation expectations, demonstrate the transparency of monetary policy, and establish their institutions’ credibility.
The monetary authorities are then confronted with a harsh choice between violating their announced target, and thus undermining the credibility that was the point of the exercise, or setting policy too tight or too loose, thus doing unnecessary damage to the economy.
If they are hit by an adverse supply shock or terms-of-trade shock in the meantime, the right step would be to loosen monetary policy sufficiently that the currency depreciates.
Indeed, if the shock is an increase in the dollar price of oil, an inflation target in theory dictates tightening monetary policy enough that the currency appreciates.
In the wake of sharp price increases in the 1970s, central banks wanted to commit credibly to monetary discipline in order to facilitate disinflation.
The context this time was a desire to achieve expectations of greater monetary stimulus, in order to facilitate recovery from the great recession of 2008-2009.
One example is India, which is currently considering adopting inflation targeting to enhance monetary discipline.
The target path for nominal GDP can be set at whatever level of monetary discipline is desired.
The transformation in China’s banking system, coupled with the recent decision to revalue China’s currency, will require major changes in the conduct of monetary policy.
Until recently, an exchange-rate peg dominated China’s monetary policy, with interest rates unchanged for nine years until October 2004, as the government attempted to manage lending through administrative guidance and credit controls.
In the future, China will have to rely more heavily on interest rates to manage monetary policy, using the price of capital, not political considerations, to influence how firms make investment decisions.
With the entrenchment of a particular ideology or mode of thinking, monetary policymakers increasingly missed – by choice or inertia – opportunities to change, reinvigorate, and improve the running of these vital institutions.
As central banks’ key role in the recovery from the post-2008 global economic crisis demonstrated, monetary policy must be flexible and innovative.
When the Fed was established a century ago, monetary authority was distributed across 12 regional reserve banks, each of which had considerable autonomy.
But, in the aftermath of the Great Depression of the 1930’s, it became clear that such decentralization had prevented the Fed from formulating and implementing a coherent monetary policy.
Fourth, central banks, especially in the US, mistakenly maintained loose monetary policy.
It was also only in the 1960’s that Milton Friedman clearly formulated the Great Depression’s monetary lessons.
During the Great Depression, a spiral of protectionist trade quotas and tariff restrictions was used to combat monetary deflation, as popular demand for political action met legislative “log-rolling” by representatives of groups with very different – and often very locally oriented – policy priorities.
The economic slowdown comes at the worst possible moment, as Europe readies itself for monetary union (emu), and the tough budget constraints imposed as a precondition for joining limit the governments' ability to use old fashioned stimulants to get their ailing economies moving.
But those surges are subsiding and can't be repeated: Italy, reconciling itself to a modest 1.7% rate of growth, is putting forth the idea of revising the Maastricht criteria for achieving monetary union in 1999.
Governments that push monetary union do so without being quite sure of what type of Europe they want to build.
Unless and until Europe's leaders shed their confusions, and speak plainly to their citizens about their thinking and their purposes, Europe's economic malaise will likely lead to a dangerous brew of monetary muddle and social unrest.
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