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Reserve in sentence

857 examples of Reserve in a sentence

But the devotees of 100% reserve banking usefully focus our attention on the fundamental issue – the credit cycle – and, like White, I believe that fundamental change is required to ensure a more stable future system.
This should entail the application of powerful macro-prudential tools: higher and countercyclical capital requirements, quantitative reserve requirements, and direct controls on borrowing through loan-to-value or loan-to-income limits.
But, in a world of fractional reserve banks, there is clearly a danger that the initial stimulus could be multiplied later by the subsequent expansion of private “inside money” purchasing power, as animal spirits return to bank and shadow-bank lenders and borrowers.
As a result, the necessary and logical corollary of the application of OMF is the restoration of quantitative reserve requirements to the policy toolkit.
Indeed, those links were central to the arguments advanced by economists like Simons, Fisher, and Friedman, who, surveying the wreckage produced by excessive credit creation in the 1920’s, proposed both OMF of fiscal deficits and a system of 100% reserve banking.
In a fiat-money world without fractional reserve banks, OMF is an obvious strategy: indeed, without it, positive nominal GDP growth might be difficult to achieve, and optimal real growth might therefore require an unattainable downward flexibility in nominal wages and prices.
Simons, Fisher, and Friedman’s support for both OMF and 100% reserve banking therefore formed an internally consistent policy package.
White questions, however, whether their support for this package was not fundamentally focused on the 100% reserve regime, rather than on OMF as a post-crisis response.
But Fisher quite explicitly identified the absence of interest payments on deficits financed by permanent monetary expansion as one of the benefits of 100% reserve banking and OMF.
At the US Federal Reserve, decisions are made by the Federal Open Market Committee (FOMC), whose members – seven governors and five presidents of the Fed’s regional reserve banks – enjoy varying degrees of independence.
But exchange-rate appreciation put great strain on the export industries that were central to these countries’ economic performance; and both countries tried desperately to avoid becoming reserve currencies.
Those tools include caps, linked to borrowers’ characteristics, on loan-to-value ratios; direct limits on currency and maturity mismatches in financial institutions’ balance sheets; limits on their balance sheets’ interconnectedness; and minimum reserve requirements for specific financial instruments.
On June 27, the People’s Bank of China lowered the reserve requirement ratio and the benchmark interest rate.
Indeed, only the continuance of a vast global threat can justify the existence of Russia's armed forces at their current size of 1.2 million personnel, as well as the current conscription system--deeply resented by oridinary Russians--and a reserve of many millions.
Hemmed in by the Americans and the Russians in the final days of World War II, Hitler convinced himself that he had two armies in reserve to mount a counter-attack and win the war.
Emerging markets have resorted to a variety of instruments to limit private-sector borrowing abroad: taxes, unremunerated reserve requirements, quantitative restrictions, and verbal persuasion.
Similarly, Chilean-style unremunerated reserve requirements may be easier to evade in countries with extensive trading in sophisticated derivatives.
At the same time, religious and political leaders must loudly condemn the violent Islamist ideology that nurtures jihadist movements, spurning them with the same vigor that they reserve for challengers to their own authority.
They are also likely to encounter the same sort of problem with other possible reserve currencies.
Some enthusiastic Europeans encouraged Asians to diversify their reserve holdings.
There is a historical parallel to today’s concern about the world’s major reserve currency.
Finally, as a step toward making the renminbi a reserve currency, China signed currency-swap agreements with the Philippines, South Korea, Japan, and Australia.
This is a matter of considerable importance to central banks, which value liquidity when deciding which currencies to hold as reserve.
After all, it is the liquidity of US Treasury bonds that makes them the world’s leading reserve asset.
The last challenge can be stated as a question that is rarely posed: Is China’s political system an obstacle to renminbi internationalization?The pound sterling and the dollar, the principal international and reserve currencies of the nineteenth and twentieth centuries respectively, were issued by democracies.
This does not imply that China must have a Democratic Spring before the renminbi becomes a leading international and reserve currency.
In other words, the self-insurance motive might explain China’s first trillion dollars of reserve holdings, but it has nothing to do with the subsequent three trillion.
While the US president can instruct administrative agencies like the Commerce Department or the Treasury Department to take specific actions (as long as they do not conflict with valid legislation), the administration cannot tell the Fed how to manage interest rates, reserve requirements, or any other aspects of monetary policy.
The old hybrid – in which advanced countries operated with floating exchange rates and open capital accounts, while developing countries managed the exchange rate via capital controls and reserve accumulation as part their growth strategies – worked as long as emerging markets’ systemic effects were relatively small.
That increase may simply reflect the increase in the value of China’s dollar-denominated reserve assets.
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