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Monetary in sentence

5081 examples of Monetary in a sentence

Between falling oil prices, aggressive fiscal and monetary policies, and the dollar's depreciation, it is hard to see what stands in the way of a strong recovery in the US.
In Europe, monetary caution, self-imposed fiscal constraints, and the Euro's appreciation all lead to clear dangers: deflation and a prolonged slump.
One Money, (Too) Many MarketsFRANKFURT – Europe’s monetary union is screeching toward the abyss, unintentionally, but apparently inexorably.
Independent national monetary policies in a common market were rightly seen as infeasible, given Europeans’ preference for stable exchange rates and open financial markets.
This called for a single currency – and thus shared responsibility for monetary policy.
Given the euro’s current travails, it is instructive to recall arguments stressed in the run-up to monetary union.
Now, given monetary union, the adjustment must be carried out by changing domestic prices relative to tradable goods – that is, by engineering a depreciation of the real exchange rate.
Ring-fencing became national supervisors’ default option, and monetary conditions became re-segmented along national lines.
The problem is not only that such heterogeneity in funding conditions renders a common monetary policy difficult to conduct.
The Federal Reserve Board's current monetary policy reflects this ambiguity: it is neither lowering nor raising interest rates.
I think this is a risky strategy; if a strong US recovery is not around the corner, then Europe needs to act on its own, using the standard counter-cyclical tools of monetary and fiscal policy.
With the outbreak of the global crisis, major advanced economies employed unconventional monetary policies, leading to massive capital flows to emerging-market economies, which lowered borrowing costs and increased access to credit.
Real libertarians never bought the Friedmans’ claim that they were as advocating a free-market, “neutral” monetary regime: Ludwig von Mises famously called Milton Friedman and his monetarist followers a bunch of socialists.
Policymakers will have to worry about a strange beast called “stag-deflation” (a combination of economic stagnation/recession and deflation); about liquidity traps (when official interest rates become so close to zero that traditional monetary policy loses effectiveness); and about debt deflation (the rise in the real value of nominal debts, increasing the risk of bankruptcy for distressed households, firms, financial institutions, and governments).
With traditional monetary policy becoming less effective, non-traditional policy tools aimed at generating greater liquidity and credit (via quantitative easing and direct central bank purchases of private illiquid assets) will become necessary.
Nevertheless, in the short run, very aggressive monetary and fiscal policy actions – both traditional and non-traditional – must be undertaken to ensure that the inevitable stag-deflation of 2009 does not persist into 2010 and beyond.
The report’s argument is that while the stated motivation for ultra-loose monetary policy might be to guard against deflation and promote economic growth at a time when demand is weak, low interest rates also help governments fund their debt very cheaply.
She argues that focusing on asset prices ignores the role – helpful for all income groups – of the Fed’s monetary policy in maintaining growth and thus warding off the threat of a wholesale depression.
That in itself may have a depressing effect on the economy, partly offsetting the monetary stimulus.
On matters of monetary policy, Latin central banks often also fail to live up to what they preach.
In theory, monetary authorities in Brazil, Chile, Colombia, Mexico, Peru, and Uruguay adhere to the modern orthodoxy of inflation targeting, which holds that price stability is the main (perhaps the only) goal of monetary policy, the short-term interest rate should be the only instrument used to achieve the inflation target, and the exchange rate ought to float freely.
To begin with – and not surprisingly for export-led economies – the real exchange rate is also an (implicit) target for monetary policy.
Unconventional monetary policy was most evident during the crisis.
In response, monetary authorities have signaled not just that they will cut rates, but also that they will use an array of unconventional measures to prop up growth.
But the recent Work Conference failed to consider China’s growth slowdown in this strategic context, placing considerable weight instead on the macro-stabilization imperatives of “proactive fiscal and prudent monetary policies.”
But focusing on a near-term growth target, and fine-tuning fiscal and monetary policies in order to achieve it – to say nothing of yet another credit crunch roiling Chinese short-term funding markets – detract from the emphasis on strategic shifts that economic rebalancing now requires.
The former should be handled by an independent central bank with primary responsibility for monetary and currency policies, whereas the latter should be the responsibility of the new Central Leading Group on Reforms, which has just been established by the Third Plenum.
An Accidental Currency War?LAGUNA BEACH – Six and a half years after the global financial crisis, central banks in emerging and developed economies alike are continuing to pursue unprecedentedly activist – and unpredictable – monetary policy.
The ECB acted despite a growing chorus of warnings that monetary stimulus is not sufficient to promote durable growth, and that it encourages excessive risk-taking in financial markets, which could ultimately threaten economic stability and prosperity (as it did in 2008).
Despite a once-unthinkable amount of monetary stimulus, global output remains well below potential, with the potential itself at risk of being suppressed.
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