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Monetary in sentence

5081 examples of Monetary in a sentence

However, monetary policy is a much more awkward, indirect and imprecise way of choosing winners and losers than fiscal policy.
We no longer live in that US-centric world, where the Fed was the only game in town and changes in its monetary policy powerfully influenced liquidity conditions at home and to a large extent globally.
And we know how to do that: accommodative monetary policy; fiscal adjustment in all advanced economies that includes concrete and realistic plans to reduce debt over the medium term, but does not undercut short-term growth; completing the banking-sector cleanup; and reforms to boost productivity and growth potential.
Such forecasting also requires an understanding of how advanced economies are coming to grips with that shift, and how the international monetary system will adjust as a result.
The international monetary system is likely to cease being dominated by a single currency over the same years.
In contrast to international trade and monetary relations, no multilateral regime exists to promote and govern cross-border investment.
In the United States, Europe, Japan, and other developed economies, the recent growth acceleration has been driven by an increase in aggregate demand, a result of continued expansionary monetary and fiscal policies, as well as higher business and consumer confidence.
This creates a dilemma for major central banks – beginning with the US Federal Reserve and the European Central Bank – attempting to phase out unconventional monetary policies: they have secured higher growth, but are still not hitting their target of a 2% annual inflation rate.
If a shock is temporary, central banks should not react to it; they should normalize monetary policy, because eventually the shock will wear off naturally and, with tighter product and labor markets, inflation will rise.
If, however, the shock is permanent, central banks should ease monetary conditions; otherwise, they will never be able to reach their inflation target.
Trying to achieve 2% inflation in a context of such shocks, the BIS warns, would lead to excessively easy monetary policies, which would put upward pressure on prices of risk assets, and, ultimately, inflate dangerous bubbles.
They believe that, should asset-price inflation emerge, it can be contained with macroprudential credit policies, rather than monetary policy.
Otherwise, they would need to sustain for much longer their unconventional monetary policies, including quantitative easing and negative policy rates – an approach with which most central banks (with the possible exception of the Bank of Japan) are not comfortable.
But continuing for much longer with unconventional monetary policies also carries the risk of undesirable asset-price inflation, excessive credit growth, and bubbles.
In short, EMU will happen; it will survive; and it will disappoint those with ardent hopes that monetary union will create a new European economic miracle.
Most economists concur that Europe is not an “optimal currency area,” in which the various regions in EMU will share the same needs of monetary policy.
Some regions will be hit by negative shocks that in other times and places would call for monetary ease or currency depreciation.
Other regions within EMU will need monetary tightening or currency appreciation.
In fact, all will now be straitjacketed by a one-size-fits-all monetary policy.
The Bundesbank’s monetary rigor will be just one voice among many in the monetary union; other voices will press for monetary expansion and a weakening currency in midst of continuing frustrations with unemployment, and new frustrations with financial sector crisis.
But, as markets learn to cope with a less accommodative monetary policy, there could be an important silver lining, which most people have ignored.
The causes of rising income and wealth inequality are multiple and nuanced; but the unintended consequences of the recent unprecedented period of ultra-loose monetary policy deserves a chunk of the blame.
President Richard Nixon’s unilateral decision in 1971 to abandon the gold standard was a major blow to the international monetary system.
Historical arguments over whether FDR’s New Deal worked now form an important part of American debates over current monetary and fiscal policy in general, and the US Federal Reserve’s policy of quantitative easing in particular.
It also lowered long-term interest rates in the US and made monetary conditions there more expansionary.
But, if we are to create an international monetary system in which crises are the exception, the Fund must play a greater preventive role.
This summer, the Turkish economy started imploding under the weight of overly loose monetary and fiscal policies.
With monetary conditions in the US tightening, and with Erdogan doubling down on his loose fiscal and monetary policies, the Turkish lira depreciated rapidly in the first half of this year, losing some 20% of its value.
The Re-Division of EuropeATHENS – As the eurozone debt crisis has steadily widened the divide between Europe’s stronger northern economies and the weaker, more debt-laden economies in the south (with France a kind of no man’s land economy in between), one question is on everyone’s mind: Can Europe’s monetary union – indeed, the European Union itself – survive?
Currency devaluation – which would boost the competitiveness of domestic industry by lowering export prices – obviously is not an option in a monetary union.
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