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Monetary in sentence

5081 examples of Monetary in a sentence

Still, we must accept that central banks’ large-scale quantitative easing takes them into uncharted territory, where the boundary between monetary and fiscal policy is blurred.
Savers are bitterly complaining that they are being penalized for their prudence; refusing to debate this and other implications of current monetary policies is not an acceptable response.
Taking monetary policy to the people is time-consuming, but it is essential if the necessary political consensus to sustain independence is to be maintained.
Otherwise, China’s central bank must focus on keeping the exchange rate stable and doesn’t have a truly independent monetary policy.
They must use not just monetary policy, but also fiscal tools, to support spending and strengthen the incentive to invest.
For example, some inflation-targeting central banks have reacted to increases in prices of imported commodities by tightening monetary policy and thereby increasing the value of the currency.
But adverse movements in the terms of trade must be accommodated; they cannot be fought with monetary policy.
The transatlantic divide is evident with respect to monetary policy.
In November of last year, the US Federal Reserve’s decision to launch a new cycle of “quantitative easing” (buying up government bonds through monetary creation) triggered fierce criticism in Europe.
As the economist Joseph Stiglitz puts it, America’s welfare state is, first and foremost, the Fed’s monetary policy.
Whether or not the reforms sought by the eurozone members raise the chances that their loans will be repaid, these creditors have a political and economic interest in the monetary union’s survival and development.
Latin America’s rapidly growing economies are particularly vulnerable, as they are forced to confront both China’s exchange-rate inflexibility and the impact of dollar devaluation arising from the US Federal Reserve’s expansionary monetary policy.
Facing a shared threat from the Soviet bloc and US prodding, European countries created institutions to promote peace and cooperation, leading to economic and monetary union, now a banking union, and possibly in the future a fiscal and political union.
Many of them thus tightened monetary policy in 2011, with consequences for growth in 2012 that have carried over into this year.
But monetary tightening would weaken already-slow growth.
Meanwhile, House Republicans are preparing their own Fed governance reforms, which would be even more radical – and would likely constrain monetary policy unwisely.
This requires a weak currency and conventional and unconventional monetary policies to bring about the required depreciation.
Since the beginning of the year, more than 20 central banks around the world have eased monetary policy, following the lead of the European Central Bank and the Bank of Japan.
With external surpluses also rising in other countries of the eurozone core, the monetary union’s overall imbalance is large and growing.
But that would require them to rely less on monetary policy and more on appropriate fiscal policies (such as higher spending on productive infrastructure).
On the contrary, the ECB is adamant that the only aim of its “outright monetary transactions” (OMT) program, which will buy distressed eurozone members’ government paper, conditional on agreed reforms, is to contain the currency-redenomination risk that contributes to elevated interest rates in southern European economies.
The goal is to restore a degree of homogeneity within the euro area in terms of the transmission of monetary policy.
To ward off an offensive by German (and other) monetary hawks, who maintain that the ECB has opened the door to debt monetization, the Bank is bound to err on the side of orthodoxy in the coming months.
The more its unconventional initiatives to repair the euro are contested, the more orthodox the ECB will be in its conduct of monetary policy.
So the way out of the European conundrum – currency depreciation – risks being blocked by the market’s perception that the ECB and the Fed are at odds over monetary policy.
At that point, the Europeans should get on with completing their monetary cordon sanitaire: orderly debt restructuring in all countries with debt burdens that are too large to be credibly restructured in Merkel’s new regime.
Unconventional monetary policies have created a massive overhang of liquidity.
Policy interest rates are near zero (and sometimes below it) in most advanced economies, and the monetary base (money created by central banks in the form of cash and liquid commercial-bank reserves) has soared – doubling, tripling, and, in the United States, quadrupling relative to the pre-crisis period.
The Economist recently asked of monetary policymakers.
By placing purchasing power in the hands of those who need it most, direct monetary financing of public spending would also help to improve inclusiveness in economies where inequality is rising fast.
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