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Monetary in sentence

5081 examples of Monetary in a sentence

Now that the worst of the euro crisis seems to have passed, it is also vital to fix the deficiencies in the monetary union’s institutional design.
The European Central Bank’s role is fundamental for both, as well as in continuing to promote growth (both through expansionary monetary policy and by facilitating market access for countries whose financing still depends on the ECB’s implicit guarantee).
Since early 2010, in order to contain inflation and property bubbles, the Chinese government has tightened monetary policy.
Wen said recently that China “should continue to implement a proactive fiscal policy and a prudent monetary policy, while giving more priority to maintaining growth.”
But, because most of those countries had handed over monetary policy to the European Central Bank and could no longer print their own money, there was a heightened risk of default.
The Messy Politics of Economic DivergenceLAGUNA BEACH – The world is increasingly characterized by divergence – in economic performance, monetary policy, and thus in financial markets.
Nonetheless, experimental monetary policies in advanced economies – such as the large-scale asset purchases initiated this month by the European Central Bank – have slowed the vicious circle of subpar economic performance and muddled politics.
Now that Prime Minister Alexis Tsipras’s government has been forced to acknowledge the unqualified priority of debt servicing, and can now benefit from unlimited monetary support from the ECB, Greece should have little problem supporting its debt burden, which is no heavier than Japan’s or Italy’s.
Moreover, the extension of ECB monetary support to Greece will transform financial conditions: interest rates will plummet, banks will recapitalize, and private credit will gradually become available for the first time since 2010.
This combination of monetary, fiscal, and exchange-rate changes would have stimulated production and employment, preventing a significant rise in unemployment.
The interest rate in France – and in all other eurozone countries – is now determined by the European Central Bank, based on demand conditions within the monetary union as a whole.
While that response implies a higher budget deficit, automatic fiscal stabilizers are particularly important now that the eurozone countries cannot use monetary policy to stabilize demand.
Their lack of monetary tools, together with the absence of exchange-rate adjustment, might also justify some discretionary cyclical tax cuts and spending increases.
The lack of an official announcement until now attests to the esteem in which it was held, its usefulness as an ornament of credibility for central banks, and fears that there might be no good candidates to succeed it as the preferred anchor for monetary policy.
Pegged exchange rates had come under fatal speculative attack in many of these countries, whose authorities thus needed something new to anchor the public’s expectations concerning monetary policy.
But this escape clause proved insufficient: when the global financial crisis hit (suggesting, at least in retrospect, that monetary policy had been too loose from 2003 to 2006), it was neither preceded nor followed by an upsurge in inflation.
And the hope of long-time US Federal Reserve Chairman Alan Greenspan that monetary easing could clean up the mess in the aftermath of such a crash proved wrong.
An economy is healthier if monetary policy responds to an increase in the world prices of its exported commodities by tightening enough to cause the currency to appreciate.
Nominal GDP targeting stabilizes demand – the most that can be asked of monetary policy.
Although some eccentrics favor a return to gold as the monetary anchor, most would prefer to leave this relic of another age to its peaceful retirement.
The good news for Asia is that most of the region’s monetary authorities are, in fact, tightening policy.
Financial markets appear to be expecting a good deal more Asian monetary tightening – at least that’s the message that can be drawn from sharply appreciating Asian currencies, which seem to be responding to prospective moves in policy interest rates.
Given the tenuous post-crisis climate, with uncertain demand prospects in the major markets of the developed world, Asia finds itself in a classic policy trap, dragging its feet on monetary tightening while risking the negative impact of stronger currencies.
The only effective anti-inflation strategy entails aggressive monetary tightening that takes policy rates into the restrictive zone.
Europe, gripped by a tremendous banking and debt crisis, is not an attractive destination, and loose monetary policy in the US has produced ultra-low bond yields there.
In turn, faster growth was expected to revitalize the labor market, counteract worsening income inequality, mollify concerns about debt and deficit levels, and enable the Federal Reserve to start normalizing monetary policy in an orderly fashion.
If it is, what could be done to shore up the monetary union?
The Dodd-Frank legislation contains rules that have impeded the functioning of the international monetary market: by raising US dollar funding costs for foreign banks, the rule compromised so-called covered interest parity.
For Japan, this undermined the transmission of monetary easing in international financial markets – a mechanism that was already strained by risk-averse investors flocking to the Japanese yen as a safe-haven currency.
The second paradox is that monetary expansion may be largely ineffective in the country that undertakes it, but can generate large negative externalities on others.
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