Nominal
in sentence
688 examples of Nominal in a sentence
In the first decade of the euro,
nominal
unit labor costs rose sharply in Greece, Ireland, Italy, Portugal, and Spain, while virtually flatlining in Germany.
But such adjustments cannot happen in a monetary union, so unit labor costs are slowly re-converging via a protracted process of flat
nominal
wage growth and slowly declining real wages (a process that would be quicker with higher inflation in Germany and Northern Europe).
The first is the failure of central banks to adopt a rule like
nominal
GDP targeting or its equivalent.
Finally, the yield curve did not steepen sharply for the United States: federal funds rates at zero I expected, but 30-Year US Treasury bonds at a
nominal
rate of 2.7% I did not.
The failure of central banks to target
nominal
GDP growth remains incomprehensible to me, and I will not write about it until I think that I have understood the reasons.
A normal US economy has a short-term
nominal
interest rate of 4%.
Workers’ wages in the US, Canada, Japan, Australia, New Zealand, and other developed countries would be inexorably competed down toward those of lower-wage trading partners, while developing-country workers would find it increasingly difficult – even in
nominal
democracies – to improve their standard of living.
In
nominal
democracies, too, such laws can be a socially acceptable way for those in power to introduce the idea that some speech is unacceptable, that some forms of activism can lead to arrest, and that the state may intervene in one’s most private space and most personal choices.
Bank credit for GDP transactions affects
nominal
GDP, while bank credit for investment in the production of goods and services delivers non-inflationary growth.
Thus, even at the zero bound of
nominal
interest rates, it is argued, central banks still have weapons in their arsenal.
First, the balance-sheet expansion of some $3.6 trillion since late 2008 – which far exceeded the $2.5 trillion in
nominal
GDP growth over the QE period – boosted asset markets.
The bitter medicine that Germany and the ECB want to impose on the periphery – the second option – is recessionary deflation: fiscal austerity, structural reforms to boost productivity growth and reduce unit labor costs, and real depreciation via price adjustment, as opposed to
nominal
exchange-rate adjustment.
For both sides, it is more desirable to let the adjustment take place through changes in
nominal
exchange rates, which would help contain deflation in the north and inflation in the south.
At the beginning of my premiership, I launched what observers have called “Abenomics,” because only in my country had the
nominal
wage level remained in negative territory for a staggering length of time.
In fact, this year’s budget deal goes further in the wrong direction, making it likely that the public debt exceeds
nominal
income within ten years.
With faster wage growth at a stable
nominal
exchange rate, and by encouraging unit labor costs to converge to those in developed economies, China’s real international competitiveness would be better calibrated.
Germany currently pays a little over 3%
nominal
interest on 10-year debt, half of what Greece is being charged for emergency loans – and far less than Greece would pay if it attempted to raise money in private markets.
A prolonged and sustained central-bank policy of keeping short-term Treasury
nominal
interest rates low is essential to keeping the many interest rate-sensitive components of aggregate demand from falling even further below potential aggregate supply.
But, while such an announcement is an obvious no-brainer for those in the Macroeconomic Camp, it would make all bankers who hold
nominal
assets or who think in
nominal
terms physically ill.
By sending its troops to South Ossetia, Georgia no doubt was politically reckless, but it did not breach any international rule, however
nominal
its sovereignty may be.
All Skidelsky can offer as evidence to support this supposition is the view of the bond markets: “Long-term
nominal
and real interest rates were already very low before Osborne became chancellor, and they stayed low afterwards.”
But sometimes there is a bit of fakery in the record, especially when the record is described in
nominal
terms and we have steady inflation.
It is ironic that the candidate countries are being lectured to by officials at the ECB and the European Commission on the trade-off between
nominal
and real convergence.
The three-percentage-point difference implies that the “real” inflation-adjusted renminbi-dollar exchange rate rose 9% over the past year (i.e., 6%
nominal
appreciation plus the 3% inflation difference.)
Highlighting the dramatic economic effects of oil producers’ reversal of fortune, the figure below compares the sum of the balances (surplus or deficit) in the general government’s budget and the external balance, as measured by the current account, for 18 oil producers, with both components scaled to
nominal
GDP.
Over the same nine-year period,
nominal
GDP in these economies increased by just $2.1 trillion.
That implies a $6.2 trillion injection of excess liquidity – the difference between the growth in central bank assets and
nominal
GDP – that was not absorbed by the real economy and has, instead been sloshing around in global financial markets, distorting asset prices across the risk spectrum.
If
nominal
interest rates are lower than the real return on investment – associated with GDP growth – the result is financial repression and increased income and wealth inequality.
To avoid this outcome, as long as China’s GDP growth exceeds that of OECD economies, its
nominal
interest rates must also be higher, its exchange rate must be more flexible, and it must tolerate higher structural inflation.
Indeed, despite domestic resistance, the PBOC must raise
nominal
interest rates so that they are in line with structural inflation.
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