Nominal
in sentence
688 examples of Nominal in a sentence
The second argument is that if the ECB stands firm, workers will not demand higher
nominal
wages, for they will understand that this would only lead to higher interest rates and higher unemployment.
One is a
nominal
anchor and one is a measure of external competitiveness.
The debt criterion, for example, could be supplemented by a limit on the (trend) growth rate of public spending, which would be kept below that of
nominal
GDP.
The
nominal
reason is Hamas’s refusal to recognize Israel.
Orderly adjustment requires lower domestic demand in over-spending countries with large current-account deficits and lower trade surpluses in over-saving countries via
nominal
and real currency appreciation.
To maintain growth, over-spending countries need
nominal
and real depreciation to improve trade balances, while surplus countries need to boost domestic demand, especially consumption.
The US is acting under the implicit assumption that if China’s GDP were to surpass that of the US in
nominal
dollar terms, US economic prospects would be reduced by an amount equal to the margin of China’s gain.
And given that its economy is already larger than America’s in terms of purchasing power parity, the fear that it will surpass the US in terms of
nominal
GDP – which is not the same thing as wealth – seems rather beside the point.
China has a significantly larger population than the US does, so it stands to reason that it will surpass the US in
nominal
size at some point (unless it were trapped in a permanent state of poor productivity).
In
nominal
terms, China’s consumer market is now around one-third the size of America’s, which is why iconic US companies like Apple sell so many iPhones there.
With annual inflation running at about 2%, the increase in the real interest rate has pushed the
nominal
yield on ten-year bonds to 3%.
Looking ahead, the combination of the rising debt ratio, higher short-term interest rates, and further increases in inflation will push the
nominal
yield on ten-year bonds above 4%.
Syriza also plans to demand a substantial reduction in Greece’s foreign debt, the
nominal
value of which remains very high – close to 170% of GDP.
Not only would registered Socialist voters be able to participate; so would all voters who agree to sign a moral charter attesting to the values of the left and were willing to donate a
nominal
sum of one euro to the party.
In
nominal
terms, aggregate tax and non-tax revenues collected by both the central and local governments exceed 35% of GDP.
Exports are growing rapidly (outpacing import growth), owing to lower energy costs, new technologies that favor re-localization, and a declining real effective exchange rate
(nominal
dollar deprecation combined with muted domestic wage and income growth and higher inflation in major developing-country trading partners).
As long as
nominal
interest rates are rising because of inflation expectations, the increase is part of the solution, not part of the problem.
The zero lower bound arises because
nominal
interest rates cannot fall below zero.
But if
nominal
interest rates stay positive, while inflation is negative, then real interest rates may become too high for an economy in recession, causing recession to become more severe and prolonged.
In the same period,
nominal
GDP soared by 348% in Brazil, 346% in China, 331% in Russia, and 203% in India, also in US dollars.
Only 11% of its China-beating
nominal
GDP growth between 2003 and 2011 was due to growth in real (inflation-adjusted) output.
Real output growth explains only 12.5% of the increase in the US dollar value of
nominal
GDP in 2003-2011, with the rest attributable to the rise in oil prices, which improved Russia’s terms of trade by 125%, and to a 56% real appreciation of the ruble against the dollar.
The share of real growth in the main emerging countries’
nominal
US dollar GDP growth was 20%.
The three phenomena that boost
nominal
GDP – increases in real output, a rise in the relative price of exports, and real exchange-rate appreciation – do not operate independently of one another.
In some countries, such as China, Thailand, South Korea, and Vietnam,
nominal
GDP growth was driven to a large extent by real growth.
Angola, Ethiopia, Ghana, and Nigeria also had very significant real growth, but
nominal
GDP was boosted by very large terms-of-trade effects and real appreciation.
For most emerging-market countries, however,
nominal
GDP growth in the 2003-2011 period was caused by terms-of-trade improvements, capital inflows, and real appreciation.
But within a decade, its asset-price bubble had burst, and its economy had essentially flat-lined in
nominal
terms.
To be sure, investors would have then lost on their bet on Argentina’s growth, but they would still have been protected against inflation, even if their bonds had not been denominated in dollars (because Argentina’s
nominal
GDP would have moved up with inflation).
In what some call a “reverse Volcker moment,” US Federal Reserve Chairman Ben Bernanke has specified a target of 6.5% unemployment alongside his inflation target;Japan’s new government has proposed a minimum inflation target; and Mark Carney, the next governor of the Bank of England, has argued that “there could not be a more favorable case for
nominal
GDP targeting.”
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