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Monetary in sentence

5081 examples of Monetary in a sentence

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).
But the unprecedented speed and scale of China’s monetary expansion remain a concern, given that it could still trigger high inflation and lead to asset-price bubbles, debt growth, and capital outflows.
But a horizontal comparison of absolute values is inadequate to assess the true scale of China’s monetary emissions.
This has fueled rising demand for currency, leading to the expansion of the monetary base, with the money multiplier – that is, the effect on lending by commercial banks – boosting the money supply further.
The key to controlling China’s monetary expansion is to clarify the relationship between currency (the central bank) and finance (the financial sector), thereby preventing the government from assuming the role of a second currency-creating body.
These activities both damage the PBOC’s balance sheet and constrain monetary policy.
Second, they overestimated the extent to which quantitative easing (QE) by the monetary authorities – that is, printing money – could counterbalance fiscal tightening.
Forecasters assumed that monetary expansion would provide an effective antidote to fiscal contraction.
There is much greater scope for fiscal stimulus to boost growth, and much smaller scope for monetary stimulus.
In Japan, Prime Minister Shinzo Abe has unleashed a combination of aggressive monetary and fiscal expansion along with promised reforms of the labor market, corporate governance, regulation, and trade.
Under current law, fiscal contraction is slated to ease next year and monetary policy is likely to remain supportive, so most forecasters predict an acceleration of growth.
For example, I recently testified at a hearing of the House Financial Services Committee on Republican-proposed legislation that would impose on the Fed greater limitations on both monetary policy and regulation.
But the fact remains that its economy, supposedly the most flexible in Europe, has not recovered from the shock five years later, despite massive fiscal and monetary stimulus, coupled with a substantial devaluation.
Some investors, at least, remember that rising inflation typically follows monetary expansion, and they fear that this time will be no different.
While reserves increased at an annual rate of 22% over the past three years, the broad monetary aggregate (M2) that most closely tracks nominal GDP and inflation over long periods of time increased at less than 6% over the same three years.
If that happens, Fed officials will face a difficult choice: tighten monetary policy to stem accelerating price growth, thereby antagonizing Congress and possibly facing restrictions that make it difficult to fight inflation in the future; or do nothing.
Leaners of Last ResortOSLO – With Jeremy Stein’s return to his academic post at Harvard at the end of May, the US Federal Reserve Board lost its leading proponent of the view that monetary policy should be used to lean against financial excesses.
If a central bank has two policy targets, then it needs two instruments: monetary policy to influence aggregate demand, and regulatory policy to limit financial risks.
What should monetary policymakers do when regulators are prone to falling down on the job?
And is monetary policy a sufficiently subtle instrument to address the resulting risks?
Rather, as recent events have amply shown, the monetary authority must lean against excesses as they develop.
Finally, there is the question of whether monetary policy is the right instrument to use in response to the risks arising from financial instability and, if so, how aggressively to use it.
And they should adjust monetary policy to address potential financial risks as a last resort, not as their first line of defense.
Clearly, the need for much greater eurozone integration must be balanced against some countries’ strong desire to preserve more national sovereignty than is feasible in the monetary union.
The proposed finance minister, responsible for overseeing fiscal policy in the monetary union, would be responsible to the eurozone parliament.
This system would allow those who do not wish to share monetary sovereignty, or engage in the kind of fiscal cooperation that must eventually come with it, to make that choice.
She has long known that fixing the monetary union would require her to issue a politically risky call for financial sacrifice by Germans.
Moreover, during the euro’s existential crisis in July 2012, Merkel supported European Central Bank President Mario Draghi’s initiative to create an “outright monetary transactions” mechanism, whereby the ECB could purchase the bonds of struggling eurozone countries.
Although these fixes helped to prevent the eurozone from collapsing, they were not enough to ensure the monetary union’s long-term resilience – a failing that has left the eurozone vulnerable to Italy’s brewing crisis.
Even lawyers are getting into the act, trying to identify legal responsibility for the monetary union’s design flaws.
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