Quantitative
in sentence
681 examples of Quantitative in a sentence
How one combines quantity and quality in some index of “life satisfaction” is a matter of morals rather than economics, so it is not surprising that most economists stick to their
quantitative
measures of “welfare.”
To do so, they have relied on near-zero interest rates and unconventional measures like
quantitative
easing to stimulate growth and job creation.
Consider the European Central Bank's announcement in January that it would implement
quantitative
easing.
The best way to achieve that is not through the current mix of ultra-low interest rates and
quantitative
easing.
That has been precisely the problem with the aggressive provision of liquidity,
quantitative
easing, and the reduction of central bank interest rates used to address the current crisis.
When
quantitative
precision and an unyielding approach to debt obligations are the rule, conflict and penury soon follow.
Exceptionally low interest rates and
quantitative
easing may be appropriate for advanced economies experiencing slow growth, but they can be problematic for emerging economies struggling to promote market-oriented price-discovery mechanisms.
At the same time, the ECB would have reached the limit of
quantitative
easing.
The Shortcomings of
Quantitative
Easing in EuropeCAMBRIDGE – Why has the US Federal Reserve’s policy of
quantitative
easing been so much more successful than the version of QE implemented by the European Central Bank?
That intellectual question leads directly to a practical one: Will the ECB ever be able to translate
quantitative
easing into stronger economic growth and higher inflation?
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.
Because Europe lacks the widespread share ownership that exists in the United States,
quantitative
easing cannot be used to stimulate consumer spending by raising household wealth.
The ECB’s
quantitative
easing policy can probably achieve higher inflation only through the increase in import prices resulting from a decline in the value of the euro.
To make real progress toward reviving their economies, the individual countries need to depend less on
quantitative
easing by the ECB and focus squarely on structural reforms and fiscal stimulus.
Just as two previous rounds of
quantitative
easing failed to accelerate US households’ balance-sheet repair, there is little reason to believe that “QE3” will do the trick.
Quantitative
easing is a blunt instrument, at best, and operates through highly circuitous – and thus dubious – channels.
Moreover, the side effects of
quantitative
easing are significant.
While it is difficult to track the cross-border flows fueled by
quantitative
easing in the so-called advanced world, these fears are far from groundless.
In an era of zero interest rates and
quantitative
easing, macroeconomic policy has become unhinged from a tough post-crisis reality.
Today, neither Draghi’s recent statements nor the prospect of an American-style program of large-scale asset purchases (also known as
quantitative
easing) has caused the euro to weaken or the inflation rate to move back toward the target level of 2%.
Because
quantitative
easing by the ECB has been advocated as a way to weaken the euro, it is worthwhile to examine the impact of its use by the Federal Reserve on the value of the dollar and the inflation rate in the United States.
The dollar’s value then remained relatively stable during more than three years of
quantitative
easing – and actually rose during 2013, when the Fed’s asset purchases reached a high of more than $1 trillion.
Nonetheless, the behavior of the dollar’s exchange rate during the period of
quantitative
easing offers no support for the proposed use of large-scale asset purchases by the ECB as a way to bring about euro depreciation.
The consumer price index rose by 1.6% in 2010, when
quantitative
easing began, then increased somewhat faster in 2011 and 2012, before dropping back to a gain of just 1.5% in 2013, the peak year for asset purchases.
Its role has expanded over time, and the Fed, along with many of its developed-country counterparts, has engaged in increasingly unconventional monetary policy –
quantitative
easing, credit easing, forward guidance, and so on – since the 2008 global financial crisis.
This could take a number of forms:
quantitative
easing combined with fiscal expansion (for example, higher infrastructure spending), direct cash transfers to the government, or, most radically, direct cash transfers to households.
The last arrow in their quiver is called
quantitative
easing (QE), and it is likely to be almost as ineffective in reviving the US economy as anything else the Fed has tried in recent years.
Fourth, gold prices rose sharply when real (inflation-adjusted) interest rates became increasingly negative after successive rounds of
quantitative
easing.
But the more positive outlook about the US and the global economy implies that over time the Federal Reserve and other central banks will exit from
quantitative
easing and zero policy rates, which means that real rates will rise, rather than fall.
First, in countries where early fiscal austerity is necessary to prevent a fiscal crisis, monetary policy should be much easier – via lower policy rates and more
quantitative
easing – to compensate for the recessionary and deflationary effects of fiscal tightening.
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