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Monetary in sentence

5081 examples of Monetary in a sentence

Neither can spend its way out of crisis if they want to meet the qualification targets, and public patience with the governments of President Chirac and Chancellor Kohl, both committed to monetary union, is strained.
And if the commitment to introduce monetary union and a common currency is broken, the backlash could deal a fatal blow to European integration.
But if monetary union succeeds, it will give to the European project the strong foundation it has lacked.
It makes sense that the international monetary system should follow the global economy in becoming more multipolar.
The Democrats favor loose monetary policy, low interest rates, and a depreciated dollar.
Republicans also oppose bailouts, but worry about excessively loose monetary policy and too much discretion for the US Federal Reserve outside real emergencies.
So helicopter money, while consistent with the ECB’s price stability mandate, would indeed blur the distinction between monetary and fiscal policies.
If the mere suggestion of monetary tightening roils international markets to such an extent, what would a US debt default do to the global economy?
For southern Europe as a whole, the single currency has proved to be a golden cage, forcing greater fiscal and monetary rectitude but removing the exchange rate as a critical cushion against unexpected shocks.
But there are strong reasons for the Fed to postpone interest-rate hikes and to keep monetary policy expansionary over the coming quarters.
The Fed’s unconventional monetary policies have been necessary for the US.
The credit boom of the past decade highlighted the inadequacy of focusing only on prices, and underscored the need for the monetary authority of a country (or group of countries in the case of the European Central Bank and the eurozone) to monitor the financial sector.
This shift in focus could radically change monetary policy, but for better or worse?
Under this scenario, the Bank of England’s Monetary Policy Committee (MPC) would favor an increase in interest rates, while the FPC would want to loosen monetary conditions.
The FPC is now part of the Bank of England, which is meant somehow to ensure that monetary policy takes into account the financial sector.
The current issue is that the monetary aggregate (M4) measure of lending to the private sector is at its lowest level in a decade, while inflation is more than double the BOE’s target.
But times have changed, and monetary policy will, of course, shift accordingly.
The problem is that if bodies like the FPC become as important to central banks as monetary policy committees, we may be left wondering which target takes precedence when they clash.
The Fed introduced quantitative easing – buying large quantities of long-term bonds and promising to keep short-term interest rates low for a prolonged period – after it concluded that the US economy was not responding adequately to traditional monetary policy and to the fiscal stimulus package enacted in 2009.
The Fed’s chairman at the time, Ben Bernanke, reasoned that unconventional monetary policy would drive down long-term rates, inducing investors to shift from high-quality bonds to equities and other risky securities.
ECB President Mario Draghi recently responded to the new evidence of eurozone weakness and super-low inflation by indicating that the Bank is likely to ease monetary conditions further at its next policy-setting meeting in March.
Previously, European leaders had averred that the euro was forever, repeating at every turn that they would do whatever it took to hold the monetary union together.
Of course, easy monetary policy can cause inflation, and the failure to “punish” financial institutions that exercised poor judgment in the past may lead to more of the same in the future.
But, as long as the degree of insolvency is small enough that a relatively minor degree of monetary easing can prevent a major depression and mass unemployment, this is a good option in an imperfect world, this is a good option in an imperfect world.
Easing monetary policy won’t solve this kind of crisis, because even moderately lower interest rates cannot boost asset prices enough to restore the financial system to solvency.
But the Fed has shifted over the past two months toward policies aimed at a second-mode crisis – more significant monetary loosening, despite the risks of higher inflation, extra moral hazard, and unjust redistribution.
Steeped in denial, the Federal Reserve is treating the disease as a cyclical problem – deploying the full force of monetary accommodation to compensate for what it believes to be a temporary shortfall in aggregate demand.
To rationalize the efficacy of this approach, the Fed has rewritten the script on the transmission mechanism of discretionary monetary policy.
The heavy artillery of monetary and fiscal stimulus is being wasted on attempts to short-circuit balance-sheet repair.
While measures adapted in the depths of the crisis – massive fiscal and monetary stimuli – were effective in placing a bottom under the free-fall, they have been ineffective in sparking meaningful recovery.
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