Nominal
in sentence
688 examples of Nominal in a sentence
In Uruguay, what the authorities presented as a voluntary transaction produced no
nominal
haircuts and only minor debt relief; in Argentina, a four-year debt moratorium was essential to achieving
nominal
haircuts above 50%.
There certainly is scope for disappointment in advanced economies, considering that gross general government debt is hovering around 106% of
nominal
GDP and fiscal deficits are stretching beyond the forecast horizon.
Given that the implicit
nominal
exchange rates are fixed “forever” within the euro, these countries have accumulated major deficits relative to Germany.
These countries saw that Southern European countries--Italy and Greece were the biggest worries--traditionally had high debt-to-GDP ratios and relatively high
nominal
interest rates because of their perceived tolerance of inflation.
But if you look at the euro zone's economic problems today, the danger of high long-term
nominal
interest rates does not even rank among investors' top ten concerns.
Greater economic openness, coupled with the fixed
nominal
exchange rate, ended China’s inflationary roller-coaster ride, and, after 1994, real GDP growth also became more stable.
The alternative would be to cut
nominal
wages (“internal” devaluation), which is hard to do (though it has been achieved in Latvia and Ireland).
With fixed-income assets offering low and even negative
nominal
returns – 70% of advanced-economy debt now trades at negative
nominal
interest rates – and real returns even lower, Argentina’s offerings, with US dollar returns that are 7% or higher, are very tempting.
The change can be measured by real exchange-rate appreciation, which consists partly in
nominal
renminbi appreciation against the dollar, and partly in Chinese inflation.
China’s government should have let more of the real appreciation take the form of
nominal
appreciation (dollars per renminbi).
Fisher's criticism, however, was even more devastating--and more relevant to Japan's current circumstances: as prices fall, debtors, whose obligations are fixed in
nominal
terms (that is, in terms of yen) find it increasingly difficult to repay what they owe.
Falling prices also mean that even when the
nominal
interest rate is very low, the real interest rate, taking into account the deflation, may be significantly higher, so investment, too, is discouraged.
That way, the size of Greece’s total public debt (and the speed of its repayment) would be linked to the size and growth rate of Greece’s
nominal
income.
Short of dropping out of the eurozone, the only real option available to Greece, Spain, and the others to boost competitiveness is to engineer a one-time across-the-board reduction in
nominal
wages and prices for utilities and services.
These
nominal
champions of the free market were quick to tell the university what it should do with its money.
The problem is that whereas until now it had been believed that
nominal
interest rates cannot fall below zero, an investor’s expected rate of return on a new investment may easily fall to zero or lower when aggregate demand is depressed.
Lower interest rates on deposits may cause large sections of the economy to become cash-based, while pension and insurance companies may struggle to meet long-term liabilities at a fixed
nominal
rate.
As the rich became richer, the middle classes were squeezed by near-zero
nominal
interest rates, which, in real terms, were actually negative.
“Abenomics” has several components: aggressive monetary stimulus by the Bank of Japan; a fiscal stimulus this year to jump start demand, followed by fiscal austerity in 2014 to rein in deficits and debt; a push to increase
nominal
wages to boost domestic demand; structural reforms to deregulate the economy; and new free-trade agreements – starting with the Trans-Pacific Partnership – to boost trade and productivity.
John Williams, President and CEO of the Federal Reserve Bank of San Francisco, recently argued that the Great Deflation could be beaten only by targeting the price level and
nominal
national income simultaneously – a New Deal-like approach featuring joint action by the Fed and the government.
Deflation is dangerous as it leads to a liquidity trap:
nominal
policy rates cannot fall below zero, so monetary policy becomes ineffective.
Falling prices mean that the real cost of capital is high and the real value of
nominal
debts rise, leading to further declines in consumption and investment – and thus setting in motion a vicious circle in which incomes and jobs are squeezed further, aggravating the fall in demand and prices.
But the inflation that accompanies it will produce a steeper and larger erosion of real wealth invested in
nominal
bonds.
Should higher
nominal
(that is, inflation-driven) growth replace debt-driven growth?
Its
nominal
interest rates will rise as bondholders fear inflation.
And, because people trade bonds for commodities, cash, and stocks, the prices of government debt are the rate of inflation, the
nominal
interest rate, and the level of the stock market.
Total
nominal
spending in America grows at 5.5% per year.
But the power of US monetary authorities to engineer swings in
nominal
interest rates is incompatible with a stable world currency supporting a sustainable expansion of world trade and income.
Why?Swings in US
nominal
interest rates cause swings in dollar exchange rates.
Declining US
nominal
interest rates lead to dollar depreciation as the attractiveness of investing in dollar assets decreases.
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