Monetary
in sentence
5081 examples of Monetary in a sentence
Compare European
monetary
policy with American actions.
America's Fed follows a rule of
monetary
policy whereby the prime objective of controlling inflation permits, according to precise parameters, a reaction to changes in the rate of growth.
Given lax fiscal discipline, the ECB will likely react with more
monetary
rigidity, pushing politicians, already enamored with the social state, to spend and tax even more.
If Europe takes this road,
monetary
policy could help by assuring the minimal stabilization of cyclical fluctuations, without having to keep nominal interest at too high a level.
On the
monetary
side, the Reserve Bank of India should focus on keeping inflation low and stable, ensuring optimal conditions for growth.
For now, the international
monetary
system remains dominated by the frameworks implemented by developed countries.
India can continue to thrive if it invests in physical and human capital and pursues prudent fiscal and
monetary
policies.
By placing
monetary
policy in the hands of central bankers who cannot be told what to do, politicians effectively tie their own hands (and get lower inflation as a result).
Compared to
monetary
policy, fiscal policy is infinitely more complex, involving many more trade-offs among competing interests.
After all, for many West European companies the existence of a common economic area--and, eventually, an enlarged
monetary
union--will make it easy to relocate their operations to those parts of Europe with lower costs but identical legal standards.
But the recent popular use of the term “awash with liquidity” dates to 2005, a time when many central banks were tightening
monetary
policy.
It may have had something to do with the near-total lack of response of long-term interest rates to
monetary
tightening.
Because fiscal policy did not stimulate the economy, a greater burden was placed on
monetary
policy.
But that is less likely now, as many countries are undertaking fiscal consolidation simultaneously, non-sovereign interest rates are already low, and
monetary
union prevents the most troubled countries in the eurozone – Portugal, Italy, Ireland, Greece, and Spain – from devaluing their way to competitiveness.
Central banks have been left largely alone with objectives that exceed the capacity of their tools and instruments, while elements of the elite wait for a chance to blame
monetary
policymakers for weak economic performance.
The Mundell-Fleming framework – which describes the short-run relationship between the nominal exchange rate, interest rates, and output in an open economy – indicates that, under Japan’s flexible exchange-rate regime, the post-hike decline in demand could be addressed relatively easily with more expansionary
monetary
policy.
In doing so, he would avoid the criticism that former Bank of England Governor Mervyn King faced for supporting a consumer-tax hike in 2011 but failing to use
monetary
policy to offset its recessionary effects.
Just a year ago, former Prime Minister Yoshihiko Noda attempted, despite a deep recession, to raise the consumption tax without
monetary
easing – a strategy that could have brought only continued economic stagnation.
By contrast, prohibiting executives from cashing out shares and options until they leave the firm would provide executives who have accumulated shares and options with a large
monetary
value with counter-productive incentives to depart.
Interpretations vary no less when it comes to
monetary
policy.
Some believe that
monetary
expansion in one country shifts the trade balance against its partners, owing to the exchange-rate effect; others believe that any adverse effect on trade balances is offset by higher spending.
But those policies’ success was rooted partly in Japan’s problematic policy choices, including slow fiscal and
monetary
responses.
Thus, today's framework in Euro area, with its unique mix of joint
monetary
policy and national responsibility for fiscal policy, was not constructed to facilitate macroeconomic coordination with the US.
Tensions hidden during the long Clinton-era boom rose throughout 2001, when America tried to address its economic downturn by rapidly easing its
monetary
and fiscal policies.
Both
monetary
and fiscal policies facilitated growth, but Europe did not help much to redress America's external imbalance.
On balance, the euro has been a success, but it does balance gains from price transparency and decreased transaction costs against the loss of independent
monetary
policies and a currency adjustment shock absorber.
Prevention begins by curbing trade friction and developing sensible post-crisis
monetary
and fiscal exit strategies, sooner rather than later.
Accordingly,
monetary
policy should be used to expand employment – even though it has consistently failed to do so.
And it must recognize that the effectiveness of macroeconomic tools – both
monetary
and fiscal – is more limited today than in 2008.
The financial sector, in particular, lacks the right incentives to contribute to addressing the climate challenge, because financial institutions’ decision-making is guided primarily – even exclusively – by
monetary
profit-seeking.
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