Example collocations logo

Monetary in sentence

5081 examples of Monetary in a sentence

Down with the EurozoneNEW YORK – The eurozone crisis seems to be reaching its climax, with Greece on the verge of default and an inglorious exit from the monetary union, and now Italy on the verge of losing market access.
This implies significant easing of monetary policy by the European Central Bank; provision of unlimited lender-of-last-resort support to illiquid but potentially solvent economies; a sharp depreciation of the euro, which would turn current-account deficits into surpluses; and fiscal stimulus in the core if the periphery is forced into austerity.
Unless they abandon asymmetric adjustment (recessionary deflation), which concentrates all of the pain in the periphery, in favor of a more symmetrical approach (austerity and structural reforms on the periphery, combined with eurozone-wide reflation), the monetary union's slow-developing train wreck will accelerate as peripheral countries default and exit.
Sequential, coercive restructurings of debt will come first, and then exits from the monetary union that will eventually lead to the eurozone’s disintegration.
The three arrows in Abenomics are fiscal spending, deregulation of cosseted sectors of the Japanese economy, and monetary easing.
The BOJ’s current governor, Masaaki Shirakawa, holds very different views on fiscal and monetary policy from those on which Abe campaigned.
Throughout his five-year tenure, Shirakawa has maintained a hawkish policy stance, insisting that monetary easing would have no possible benefit for Japan’s long-stagnant economy.
But, instead of a debate about monetary policy, the only question being asked is whether Shirakawa’s successor will come from the finance ministry, academia, or business.
With the BoE at liberty to create as many billions of pounds as it deemed fit to reflate the City and back the government’s bank nationalization and monetary stabilization drive, Britain escaped the crisis with a single-year recession (2008-2009) amounting to a loss of 5.15% in national income.
Either the British government would have, overnight, declared its exit from the euro, without a referendum or even a parliamentary vote, or Germany and France would have had to agree to scrap immediately the ECB’s prohibition of monetary financing.
Under these conditions, monetary policy should remain accommodative and further fiscal austerity should be eschewed.
But the choice of monetary partners is nonetheless a matter of judgment.
But is it fair or right that they should be allowed to take matters into their own hands and determine a system of international monetary management designed to serve their own interests, with little regard for other, equally exposed, countries?
The final knockout – which would occur if “the Financial Policy Committee (FPC) judges that the stance of monetary policy poses a significant threat to financial stability” – points to the third problem.
A second crucial difference lies in the two countries’ mix of monetary and fiscal policies.
This is not desirable for its own sake, as conservatives might argue, but rather for the additional scope that it creates for monetary policy.
Currency ChaosBRUSSELS – Guido Mantega, Brazil’s finance minister, aptly captured the current monetary Zeitgeist when he spoke of a looming “currency war.”
Given that China’s net external lending position amounts to $1.8 trillion, or 17.2% of GDP, the central bank has enough liquidity to reduce banks’ reserve requirements without resorting to unconventional monetary policy.
But advanced countries have learned the hard way in recent years how difficult this approach can be, as their massive unconventional monetary policies have failed to overcome deflationary forces.
While individual countries obviously lack currency flexibility in a monetary union – one of Europe’s most obvious and important differences from Asia in the late 1990’s – there is nothing to prevent a depreciation of the euro from boosting pan-regional competitiveness.
China’s economic exceptionalism is now being threatened by a perfect storm of existing stresses – namely, the domestic debt build-up – and new complications, including US trade barriers, the geopolitical pushback against China’s Belt and Road Initiative (BRI), and tightening monetary conditions, particularly in the United States.
Similarly, emerging economies in Latin America changed their economic-policy course after devastating crises – in some cases a series of them – and moved toward strengthening monetary frameworks to reduce dollarization and build local capital markets, liberalize markets, and improve governance.
Central Bankers’ Shifting GoalpostsBRUSSELS – The theme of this year’s meeting of the world’s central bankers in Jackson Hole, Wyoming, had little to do with monetary policy.
Conditions today are very favorable for monetary policymaking, particularly for the ECB – as a brief look at history makes clear.
Since the creation of the Economic and Monetary Union (EMU) in January 1999, the ECB has been solely responsible for determining the EMU’s monetary policy.
Those two key indicators of monetary policy are at almost exactly the same levels today, but financial markets are significantly more settled now than they were then.
Other economists, mainly in Europe, argue that Germany must assume a political role befitting its economic preeminence and must accept sovereignty-sharing (and burden-sharing) arrangements to ensure the monetary union’s cohesion and sustainability.
Germany’s stance marked the first open challenge by a leading European power to the notion that the monetary union is irrevocable.
What is needed is not structural reform within Greece and Spain so much as structural reform of the eurozone’s design and a fundamental rethinking of the policy frameworks that have resulted in the monetary union’s spectacularly bad performance.
What makes Greece’s problems more difficult to address is the structure of the eurozone: monetary union implies that member states cannot devalue their way out of trouble, yet the modicum of European solidarity that must accompany this loss of policy flexibility simply is not there.
BackNext