Tightening
in sentence
448 examples of Tightening in a sentence
And even in those cases, stock markets barely reacted to the Fed tightening, while bond-market volatility proved short-lived.
Looking at the monetary
tightening
that began in February 1994 and June 2004, the dollar strengthened substantially in both cases before the first rate hike, but then weakened by around 8% (as gauged by the Fed’s dollar index) in the subsequent six months.
For currency traders, therefore, the last two cycles of Fed
tightening
turned out to be classic examples of “buy on the rumor; sell on the news.”
Just because the dollar weakened twice during the last two periods of Fed
tightening
does not prove that the same thing will happen again.
The globally disruptive effects of US monetary
tightening
– a rapidly rising dollar, capital outflows from emerging markets, financial distress for international dollar borrowers, and chaotic currency devaluations in Asia and Latin America – may loom less large in next year’s economic outlook than in a rear-view glimpse of 2015.
Tightening
the rules governing accessibility to different early retirement systems is more likely to be effective than raising the "official" retirement age.
In fact, fiscal
tightening
on anything like this scale would produce a deep recession, increasing the debt ratio.
But this
tightening
by a fraction of a percentage point of GDP implies no adverse effect on growth.
But China has another motive for
tightening
the noose on rare-earth exports: it wants to force high-tech firms to operate in China, so that local companies can absorb their technologies.
Given this, the Fed will be the site of rising tension, as regional presidents counter the governors’ preference for monetary stimulus by pushing for policy
tightening.
It is worth remembering that in the Fed’s previous two
tightening
cycles, the equilibrium rate was 6.5% and 5.25%, respectively.
If a
tightening
of margin and minimum capital requirements does not deflate a bubble, regulators can tighten some more.
Finally, attention should be paid to the balance between fiscal
tightening
and supply-side reforms: whenever appropriate, more priority should be given to the latter than has been the case so far.
In other words, so-called quantitative easing (QE) is being replaced in the US by QT, or quantitative
tightening.
But it is clear that central bankers are nervous about moving rapidly, and are worried about the potential impact of policy
tightening
on financial markets.
The voting system used by the BoE’s Monetary Policy Committee makes it harder for the governor to know when a majority for
tightening
will emerge, and some members’ views have been oscillating in recent months.
One reason for this is widespread pessimism about Japan’s economy, reinforced by volatility in China, monetary
tightening
in the United States, and the collapse in world oil prices.
For starters, Japan, like emerging economies with flexible exchange-rate regimes, may actually benefit from America’s monetary tightening, as an appreciating dollar makes Japanese exports more competitive.
With this move, the military leaders are putting their sham vote aimed at
tightening
their repressive grip on power ahead of the well being of the Burmese people.
Will Fed
Tightening
Choke Emerging Markets?
The fear, as IMF Managing Director Christine Lagarde has reminded us, is of a repeat of previous episodes, notably in 1982 and 1994, when the Fed’s policy
tightening
helped precipitate financial crises in developing countries.
Even though the Fed has not yet started raising interest rates, the well-established US economic recovery and the prospect of monetary
tightening
have, over the last year, caused the dollar to appreciate sharply against most currencies, those of emerging markets and advanced countries alike.
As sensible as this two-pronged approach – spend now, cut later – may be, it is made virtually impossible by the absence of any mechanism whereby President Barack Obama can credibly commit himself or future administrations to fiscal
tightening.
But the recent popular use of the term “awash with liquidity” dates to 2005, a time when many central banks were
tightening
monetary policy.
It may have had something to do with the near-total lack of response of long-term interest rates to monetary
tightening.
If central banks are
tightening
and long-term rates aren’t rising, one needs some explanation.
While monetary-policy
tightening
may be necessary, it risks triggering a serious liquidity crisis in developing countries, with a major impact on economic growth and development.
Infrastructure investment is down as well, with many high-speed railway projects on hold and local governments and special-purpose vehicles struggling to obtain financing amid
tightening
credit conditions and lower revenues from land sales.
Fiscal
tightening
will escalate in 2012 and 2013, contributing to a slowdown, as will the expiration of tax benefits that boosted capital spending in 2011.
Little wonder, then, that the latest release of the closely followed minutes of the Federal Open Market Committee meeting points to a divided body, whose members anticipate divergent paths for monetary policy, with some expecting further accommodation and others expecting a round of
tightening.
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