Nominal
in sentence
688 examples of Nominal in a sentence
Given that balance-sheet accounting is conducted according to a curious mix of
nominal
and market values, it can be opaque and easy to manipulate.
Third, while ECB policies keep borrowing costs lower, private and public debt in the periphery countries, as a share of GDP, is high and still rising, because the denominator of the debt ratio –
nominal
GDP – is barely increasing.
In fact, the Fed has been under increasing scrutiny since 2008, when near-zero
nominal
interest rates drove it to become the first central bank to adopt QE.
Arguably, Japan is an exceptional case, with the constraint of the zero bound on
nominal
interest rates demanding, at long last, a deviation from conventional measures.
No surprise, then, that policy rates (both
nominal
and real) have ratcheted ever downward to where they are today.
Targeting the level of
nominal
GDP (or the unemployment rate, as in the United States) is a way of convincing financial markets and potential spenders that policy rates will remain very low for a very long time.
If he and the rest of the Federal Open Market Committee thought that the projected growth of
nominal
spending in the US was on an appropriate recovery path two months ago, they cannot believe that today.
On the contrary, the shadow is lengthening with each passing day, owing to the absence of effective policies to get the flow of economy-wide
nominal
spending back on its previous track.
Second, negative inflation means that real interest rates rise, because central banks cannot lower the
nominal
interest rate below zero.
The territory being exchanged comprises lawless enclaves, where the
nominal
sovereign lacks real authority.
The monthly US trade deficit reached $54 billion in September, exceeding in
nominal
terms the deficits recorded every month from 2009 to 2017.
Unless the supply of a currency tracks potential
nominal
GDP, prices will undergo deflation.
By extension, any
nominal
debt contract denominated in Bitcoin would rise in real value over time, leading to the kind of debt deflation that economist Irving Fisher believed precipitated the Great Depression.
At the same time,
nominal
wages in Bitcoin would increase forever in real terms, regardless of productivity growth, adding further to the likelihood of an economic disaster.
In the United States, the Federal Reserve has essentially adopted a quantitative employment target, with
nominal
GDP targets and other variations under discussion in other countries.
The good news is that the new budget is much more realistic, as it cuts spending by about 2% in
nominal
terms.
The only alternatives to an IMF program are an inflationary spiral to dilute the real value of debt and other
nominal
liabilities, or a downward economic spiral that may cause a need for debt restructuring.
Indeed, growth in
nominal
wages slowed sharply in the second quarter of this year.
Nominal
GDP is lower than it was seven years ago, meaning that debt is being serviced from a stagnant or declining income.
While reserves increased at an annual rate of 22% over the past three years, the broad monetary aggregate (M2) that most closely tracks
nominal
GDP and inflation over long periods of time increased at less than 6% over the same three years.
In
nominal
terms, the level of personal saving is nearly double what was reported over the prior four quarters.
The upward revisions go even further back, with the percentage differences between updated and prior data on
nominal
personal saving in double digits since the mid-1990s.
Nothing changes the grim reality that America’s current-account deficit is headed to more than 3% of
nominal
GDP, implying increased reliance on foreign investors.
The level of real interest rates is particularly important for share prices, because higher inflation raises
nominal
profits in a way that offsets the inflation component of higher interest rates.
House prices reflect
nominal
interest rates as well as real interest rates.
Higher
nominal
interest rates limit the number of qualified homebuyers by increasing the monthly interest payments for any size of mortgage.
Growing confidence in economic expansion and falling unemployment has raised investors’ expectation of future inflation, pulling up the
nominal
interest rate on ten-year bonds.
Nominal
bonds are not well hedged against inflation, and, over the long run, assets that are claims to cash without effective control are highly vulnerable to financial vultures.
In terms of
nominal
per capita GDP, Russia still fares little better than Mexico.
From the mid-1990s to 2005, the renminbi was virtually pegged to the US dollar in
nominal
terms, and the dollar did experience real appreciation.
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