monetary policy

The Fed's classic mistake that led to the Great Depression was that it tightened monetary policy when it should have eased.

A second error was that Japan tried to offset the adverse economic effects of a strong yen with over-lax monetary policy.

In addition, the report from Nikkei Business Daily said the Bank of Japan is considering additional steps to ease monetary policy.

The Bank of England's monetary policy committee is split on whether to raise interest rates, but it has got more hawkish.

If fiscal policy as a left- wing economic take -off , then monetary policy is no doubt that it is the right - wing.

And its monetary-policy arm's overstimulative policy ahead of the credit boom arguably made it a stoker of systemic risk.

"We have to prepare for relatively high inflation in the coming decade and that's why monetary policy has to be relatively tight, " he said.

"Hence, making monetary policy less accommodative would not be inconsistent with maintaining the current monetary policy stance, " he said.

That background might predispose the new ECB president to the sort of monetary-policy activism that the Fed has gone in for.

As the central bank has tightened monetary policy, this has made it harder for the bank to win the business of ordinary savers.

Fan said the central bank could continue to loosen monetary policy if loan growth turns out to be sluggish next year.

Equities nearly halved their losses after the Fed stuck with its ultra-loose monetary policy and said the economy was gaining traction.

For Canada to have an independent monetary policy, it had to let its currency float.

The news comes as China continues trying to cool the economy by restricting monetary policy and imposing anti-inflation measures.

That is to say, low interest rates are a symptom of recession, and recession is often a symptom of too-tight monetary policy.

Lord George was a moderniser, and nothing brought the bank up to date better than giving it independence over monetary policy.

Some colleagues on the Bank's independent Monetary Policy Committee thought the governor should keep his nose out of fiscal policy.

Quantitative easing was a tool of monetary policy that the Bank of Japan used to fight deflation in the early 2000s.

The bank's monetary policy risks letting inflation get so far out of control that there won't be any way to gently step on the brake.

Youth unemployment needs to be tackled urgently, said David Blanchflower, former member of the Bank of England? s monetary policy committee.

Traders said the markets were pricing in a move to ease -monetary policy further at the Fed's rate-setting meeting on Tuesday.

It's trying to run its own monetary policy, raising interest rates and ratcheting back bank credit to curb inflation.

As the Times noted, "By his own description, Mr. Geithner's expertise is in matters of currency exchange rates and monetary policy. "

In a conversation with me on Monday, the congressmansaid that he intends to get into the question of monetary policy itself.

Monetary policy, in short, is still determined by the amount of money in the system rather than the price of it.

In Asia, the Reserve Bank of India sent a signal that it was ready to start tightening monetary policy once more.

Now, as a fierce fiscal retrenchment begins, the bank is expected to cushion the impact by keeping monetary policy looser for longer.

China has flirted with trying to tighten up its monetary policy to tamp down inflation, but it has not really taken decisive action.

He expanded on this theory, known as monetarism , by studying years of American monetary policy.

As noted, buyers of capital and consumer goods are not buying, even though monetary policy is trying to make it easy.

'With help from monetary-policy steps, I'd like to avoid the economy from falling into a double-dip recession, ' he said.

For a start , the US is not the only country that has tried to revive its economy through ultra- loose monetary policy .

Monetary policy did not change. Banks were all positioned the same way, he says.

The inflation control target is at the heart of Canadian monetary policy that the Bank and the Government have established.

For a start, they have left too much of the task of preventing overheating to monetary policy, pushing up the cost of credit.

Already, one member of the bank's nine-strong monetary policy committee has been voting for a quarter-point rise in the base rate.

The U. S. central bank in its monetary policy pushes interest rates up or down by moving money in and out of the financial system.

Consequently, whether monetary policy is transparent or secretive, policy effectiveness is possible to achieve in practical implementation.

And part of the appeal of "one tool, one target" was that it made monetary policy explicitly a technical rather than political affair.

MR. GEITHNER: You're trying to get me to speak about monetary policy, which I won't do.

Chinese stocks extended their winning run to a fourth session yesterday as hopes of looser monetary policy continued to grip the market.

How much further China eases monetary policy is bound to reflect the leaders' views of how deeply the Chinese and global economy may slow.

For the Bank's Monetary Policy Committee this is a useful peek at the state of the economy at the moment that it makes its decisions.

A few days earlier, the City had been expecting the monetary-policy committee (MPC) to do nothing this time around.

Monetary policy had been overly tight in the early years of the last decade.

One of the main reasons for the strength of the European currencies this year is anticipation of a tightening of monetary policy by the ECB.

That consensus is fraying. Just as it has on the wisdom of more fiscal stimulus, opinion is starting to polarise on monetary policy.

If we were at the beginning of an ordinary cyclical recovery, the combined fiscal and monetary policy response would be reasonable.

Analysts said the move could herald more aggressive monetary policy easing if more signs of a slowing economic recovery emerge.

There will be calls for remedial action from the Bank of Japan, although it has no low-risk way to ease monetary policy much further.

For today, forget about sectors and trying to map economic and monetary policy out of Beijing.

The FPC is now part of the Bank of England, which is meant somehow to ensure that monetary policy takes into account the financial sector.

Particular problems, like the monoline insurers, should be dealt with by particular remedies, not the warm bath of monetary policy.

For a clue, view the Budget statement next to the latest minutes from the Bank of England's Monetary Policy Committee.

We never claimed to have found a solution to the problem of monetary policy and asset prices, but we tried hard.

Sushil Wadhwani, former member of the Bank of England's monetary policy committee and a Khosla family friend, is also a shareholder.

That leaves it to the Bank of England's monetary-policy committee to fire-up the economy.

He said: "Fiscal and monetary stimulus together may provide broader support for the economy than monetary policy actions alone. "

Adam Posen, a member of the Bank of England's Monetary Policy Committee, lamented that fact in a speech in October.

From this perspective, money does not deserve to be central to one of the two "pillars" of the ECB's monetary policy strategy.

The reversible, self-financing and immediately applicable nature of the above monetary policy plan should reduce these fears.

It's going to be better in fighting inflation, you know, monetary policy will be more effective.

Also, output continued its decline through 1982, when it began to climb at a time when monetary policy remained tight.

At present, the market tends to reasonable valuation levels, with easy monetary policy introduced, the market will inject more liquidity.

Unfortunately, monetary policy seems to be pushing on a string.

It cannot be stated too strongly: US fiscal policy is not exhausted (nor is monetary policy, for that matter).

Monetary policy is usually administrated by a Government appointed "Central Bank" .

In countries with floating currencies, looser monetary policy often (though not always) results in a weaker exchange rate.

For the moment, therefore, ordinary monetary-policy rules do not apply.

Monetary policy is usually administered by a Government appointed "central bank" .

He worries that the Fed has long underestimated the extent to which changes in financial structure complicate the task of monetary policy.

Said Li Daokui , an academic economist who sits on the central bank's monetary-policy committee: 'This marks the beginning of a new era. '

Against this background, the Governing Council continued to judge the current stance of monetary policy as appropriate.

At present, the dominant academic view seems to be that monetary aggregates should have no part in monetary policy decisions.

For more than 20 years, Ron Paul, the Texan Republican, has been trying to pass a bill that would audit the Fed's monetary policy decisions.

Central-bank 'independence is lost when monetary policy is tied to the wagon of fiscal policy and then loses control over prices, ' he said.

Allow freer capital flows in and out, to help normalize monetary policy?

First, we eased monetary policy substantially, particularly after indications of economic weakness proliferated around the turn of the year.

Countries with dollar pegs are in effect importing America's looser monetary policy and with it inflationary pressure.

the euro has adopted the single monetary policy , but each country acts of its own free will in terms of banking regulation.

And in a country where new loan data is one of the key determinants of monetary policy, that's a real problem.

It would be a fully-fledged financial stability agency as well as a monetary policy agency.

The lesson drawn was that it was important to avoid an excessively tight monetary policy.

With the big exception of the European Central Bank, most have repeatedly postponed the moment at which monetary policy is tightened.

Subordinating monetary policy to exchange rate policy would be painful for institutions like the ECB.

They were able to maintain economic growth without inflation, despite the rise of oil prices, by following an expansionary monetary policy.

"It should ease some of the concerns that monetary policy has been politicized, " he said.

But as the loosen of capital account control, the independency and effectiveness of its monetary policy will also be greatly affected.

The clarity of the monetary policy objective and the transparency with which we operate the monetary system should help.

It is as if the ECB were setting its monetary policy to meet the conditions of Spain alone.

The Bank of Canada is Canada's central bank. The Bank of Canada is responsible for monetary policy, issuing bank notes, regulating etc.

The monetary policy taken by American government before was to curb the inflation, but it has been no longer effective now.

With monetary policy as it is now, and in the absence of a crash in global growth, global and US inflation rates could easily rise.

Years of ultra-loose monetary policy are likely to have unwelcome side-effects.

He said there could be a prolonged period of high unemployment in the US, which warrants lose monetary policy.

High oil prices are therefore at least partially a consequence of an expansionary monetary policy in the US.

First, deflation: clearly, there has been a very aggressive monetary policy response.

Meanwhile, any sign of an increase in consumer inflation is likely to increase fears of a monetary policy tightening.

The central bank uses monetary policy including reserve requirement system to regulate the money supply of a country.

This was how the ECB's monetary policy produced a more or less adequate rate of expansion of overall eurozone demand.

By loosening monetary policy, governments could apparently buy a reduction in unemployment at the price of a little more inflation.

Like the monetary-policy committee, the financial version will contain external experts as well as central bankers.

The stock market certainly is supported by benevolent monetary policy, benign inflation, and both a wall of money and a wall of worry.

'The ability of monetary policy to sustain demand inevitably has diminishing returns, ' he said.

Yet this latest report also underlines the limitations of the Bank's approach to monetary policy.

But over the long haul the dollar tracks the strength of the economy, rather than monetary policy in isolation.

Chairing his first meeting of the Bank's monetary policy committee (MPC), interest rates were cut to a post-war low of 3. 5%.

Conventional wisdom holds that the eurozone problem is the adoption of a common monetary policy without a common fiscal policy.

China's monetary policy and the further opening of its financial markets to US institutions are expected to be high on the agenda.

Clearly, the governor keeps his love for a Chinese turn of phrase separate from his monetary policy.

In short, having lost their ability to control their monetary policy, voters may have to lose control over their fiscal policies as well.

The central bank's monetary policy analysis group in a report that more funds have begun to flow to the central and western regions.

It would therefore be unwise, to say the least, for policymakers to rely on monetary policy alone.

The meeting discussed the direction of monetary policy in the next stage.

Fed Chairman Ben Bernanke has opened the door to a further easing of monetary policy, but officials have said they are hesitant to act.

Exchange rate stability is, of course, the monetary policy objective. We therefore have no interest rate policy.

Asia has traditionally waited for the U. S. Federal Reserve to act before tightening or loosening its own monetary policy.

His ambition was that monetary policy decision-making should become "boring" .

"It won't be a monetary policy measure. It's a structural reform measure, " he said.

Presidents do not directly affect monetary policy because the U. S. Federal Reserve is an independent entity.

It advocates a monetary policy that directly targets the value of money and does not target interest rates at all.

"Adjustment of monetary policy will be needed eventually, but this is not the time, " he said.

S. A wider rate differential between the U. S. and China would only encourage inflows of hot money and complicate monetary policy further.

A bigger current account surplus and a more aggressive monetary policy are necessary conditions for ending the Japanese malaise.

That has prompted concerns that Indonesia's monetary-policy horse might be clopping along far behind the inflationary cart.

BOTH domestic monetary policy and foreign exchange interventions can be thought of as affecting the value of a currency.

Ultra-loose monetary policy led to a massive bubble bursting and a banking collapse.

On the one hand, there may be a desire to recoup room for monetary policy in case the economy disappoints and again requires stimulus.

In a surprise move the Bank of Canada held rates at 3. 00% and comments that monetary policy was "appropriately accommodative " .

Monetary policy is to be "moderately relaxed" , which means keeping up the lending.

This has been a hugely destabilising force, inevitably exacerbated by the "one-size-fits-all" monetary policy.

A sharp tightening of monetary policy is normally seen as being bad news for equity investors as it takes the steam out of stocks.

The Bank of England's monetary-policy committee reckons that output will be flat, but even that may prove optimistic.

Unwillingness (or inability) to borrow on such a scale will, in turn, hamper the effectiveness of US monetary policy.

The Federal Reserve's recent and unprecedented actions in the realm of monetary policy have provoked a backlash among the American people.

"Monetary policy seems to be too loose for the good of China because of the large current account surplus. "

"This will help to make monetary policy more flexible and independent, " he said.

"US monetary policy is intended to address both financial and economic issues in the US, " he said.

A common theme among the most vocal critics is that QE is some sort of voodoo monetary policy.

Until Thursday, government statements had included words promising a "moderately loose monetary policy" and a "proactive fiscal policy. "

It appears that Mr Paul's subcommittee on monetary policy will not be allowed to summon Mr Bernanke to testify.

A more benign route to the same destination would be a combination of tight fiscal and loose monetary policy.

Some of it is home-grown, caused by a deliberate tightening of monetary policy to curb inflation and an overheated property market.

An independent monetary policy crafted by the Fed is one of our enduring achievements.

Asian financial crisis, China began to implement a proactive fiscal policy and prudent monetary policy.

The European Central Bank and the Bank of England are expected to keep monetary policy on hold on Thursday.

If the Fed undertakes expansionary monetary policy, can it return the economy to its original inflation rate and original unemployment rate?

First, China's growth has slowed, thanks largely to tight monetary policy since the beginning of 2011.

The only way out of this dilemma is to change the interaction between Asian and US monetary policy .

Price stability plays a dual role in modern central banking: It is both an end and a means of monetary policy.

Popular folklore has it that the bursting of an asset price bubble and a restrictive monetary policy caused that country's 1990s stagnation.

There appears to be little political appetite for a further round of fiscal stimulus or easier monetary policy.

By loosening monetary policy, governments could apparently buy areduction in unemployment at the price of a little more inflation.

S. will continue to press China to boost the value of its currency but may be on the receiving end of criticism about U. S. monetary policy.

The politicians are also expecting the BoJ to give growth a shove by means of its monetary policy .

Mr Bernanke points to structural models which show that only a modest part of the house-price boom can be pinned on monetary policy.

What Asia requires, in short, is monetary policy decoupling. This can only happen if central banks allow greater exchange rate flexibility.

In fact, that translates into a need for the co-ordination monetary policy with fiscal authority.

"Monetary policy rules do not allow the monetary authorities to respond to unforeseen circumstances, " they said.

We hope this is not the beginning of a tightening in the monetary policy cycle.

During his trip, Mr Greenspan visited the Bank of England's monetary policy committee.

Our monetary policy is also an important weapon in developing production and fighting the enemy.

Theory that advocates strict control of money supply as the major weapon of monetary policy, especially against inflation.

Chinese policymakers will further implement tight monetary policy and allow the yuan to appreciate more quickly to help fight inflation.

This would help prevent the economy falling into a liquidity trap, a position when monetary policy loses traction.

Expansionary Monetary Policy - Policy enacted by the Fed that increases the money supply and thus increases output.

The focus for monetary policy should be purely on the price of money as determined by the supply of money and the demand for money.

They have, however, been trying to become more engaged and communicative about monetary policy than in the past.

However, a shift in the longer-term stance of monetary policy, by lowering the benchmark price of money, is a very different proposition.

But monetary policy needs to be at least a partial offset.

Coordinated currency interventions are a helpful and decisive signal of a monetary policy change, but aren't required.

When monetary policy decisions follow such a rule, economic stability and growth increase.

Hence, monetary policy is only expected to transition from super-expansionary to still-pretty-expansionary.

By leaving monetary policy to market forces we would have normal recessions and minor booms that would be totally self-regulating.

"Aggressive monetary policy can reduce the depth of a recession, " declared the 2004 Economic Report of the President.

Earlier fiscal and monetary policy actions should also begin to kick in, he said.

Also important was an accidental switch to contractionary monetary policy.

When viewed in isolation, the resolutions do not amount to much, since they do not aim to intrude on monetary policy and are not binding.

One is monetary policy, the purview of the Fed, which deals with the amount of money and availability of credit in the economy.

At the moment, the prime minister, Wen Jiabao, is signalling that he wants monetary policy kept fairly loose.

The Bank of England's monetary-policy committee has been agonising for months over whether to raise them.

Contractionary Monetary Policy - Policy enacted by the Fed that reduces the money supply and thus reduces output.

Analysts believe that the Central Bank reports disclosed information reflecting the monetary policy will not relax, raised market worries.

It has cranked the levers of fiscal and monetary policy because it knows that, if it does not, its economic growth will wither.

But it now also has to contend with a strong yen, thanks in part to loose monetary policy in the rich world.

"This framework is exactly what a tight monetary policy means, " he said of the expected slowdown in M2 and lending.

Even if taking into account of the monetary policy constraint, China's lending could be 10% higher.

We found that monetary policy was more powerful with flexible exchange rates.

Developing economies have varying degrees of room to respond to any slowdown with fiscal and monetary policy .

namely, a strong indication that, so long as a substantial fall in inflation remains a risk, monetary policy will maintain an easy stance.

But it is not clear whether quantitative easing on its own changes people's expectations of monetary policy and inflation.

Monetary policy is not self-evidently the most reliable instrument for tackling the implosion of a prior private debt explosion.

As I wrote earlier this year, the US's monetary policy has already laid the seeds of the next Crisis.

The central bank's current monetary policy is usually based on its forecast of economic data, Zhou said.

From the result of these empirical study s, the conclusion is that monetary policy can hardly control excess liquidity effectively.

to the extent that monetary policy can 'cut off the tail' of the distribution of potential adverse economic outcomes . . .

In a credit bubble, monetary policy plays a dominant role and must be held responsible for it.

Grant's monetary policy of contracting the money supply (again, also thereby raising interest rates) made matters worse for those in debt.

But earlier this month only one of the nine-strong monetary-policy committee backed another quarter-point cut.

He approved of massive government spending to help an economy escape from recession when monetary policy can do no more.

Policy-makers have so far relied more on the easier path of reflating domestic demand via monetary policy easing and fiscal expansion.

The former Fed chairman is at once candid and slightly uncomfortable about commenting on current monetary policy debates.

The deposit reserve policy is one of the important monetary policy tools in the central banking system.

A debate is now raging over whether the central bank should ease up on its tight monetary policy.

This prompted the Bank's monetary policy committee to lower rates in August.

Our macro-control mainly depends on planning tools, monetary policy is subject to the requirements of the planned economic system.

But by guaranteeing to invest the proceeds of maturing securities, the Fed has merely put monetary policy on hold, it has not eased it.

As the financial sector healed and recovery gained traction, the need for a timely monetary policy exit became apparent.

The best way to avoid that outcome would be a radical tightening of the current super-easy monetary policy.

On Tuesday, it said it would increase the money supply to make the MBS purchases, effectively easing monetary policy further.

Worse, a change in monetary-policy rules in the aftermath of a crisis would itself damage central bankers' hard won credibility.

In the midst of a global slowdown, the scope for a tighter monetary policy is also constrained by concerns about growth.

In short, this looks to me like a cyclical downturn brought on by tighter monetary policy, and not a "hard landing" or crisis.

The ECB, she said, was responsible for monetary policy alone.

Nonetheless, the assessment is compatible with a continued implicit bias towards inflation and tighter monetary policy.

If financial markets came to believe that political pressure was driving monetary policy, there would be dangerous consequences.

Zhang said he expects the government to maintain its housing measures and loosen monetary policy "gradually. "

Many Germans see the purchases as a dangerous deviation from orthodox monetary policy, and a step towards fiscal support.

but the china ' s interest rate has not stepped into liquidity trap . monetary policy is still effective.

Capital controls which prevent money from moving in an out of an economy easily consulate monetary policy to some extent.

Fiscal policy adjusts government spending and taxes; monetary policy adjusts the amount of money in circulation.

"I feel that monetary policy should remain on hold, " Hoenig said in an interview on the CNBC cable television channel.

Let me elaborate briefly on the relationship between price stability and the other two goals of monetary policy.

A central objective of the Fed's monetary policy is price stability, defined as a low, steady rate of overall inflation.

Even so, the monetary policy still plays the role of restraining commercial housing price from jack-up and its impact gradually appears.

Even if we do not go this far, we have to admit that the ability of monetary policy to offset the fiscal tightening is limited.

Instead, it suggests that recent steps to loosen monetary policy and ease credit shortfalls have had some impact.

They do differ, however, on the proposition that a liberal monetary policy can move the economy effectively out of a recession.

We see a relaxation in US monetary policy as probable during the next few months, and we view valuations as very reasonable in most markets.

And a country cannot control its monetary policy unless it accepts a more flexible exchange rate.

So it is worrying that global monetary policy is now at its loosest since the 1970s: the average world real interest rate is negative.

And their recoveries have been boosted by governments which have dramatically loosened monetary policy and increased government spending.

The reserve requirement increase follows a number of less clear indications that the easy monetary policy was being reconsidered.

The danger for the real economy is not that the return to a normalised monetary policy takes place, but it does so too late.

Because monetary policy cannot get apparent results in a short time, the effectiveness of monetary policy surfers from suspicion.

Beijing uses credit quotas as the main weapon in its monetary policy arsenal, limiting the amount that banks can lend.

Government Bonds - Bonds issued by the government and sold by the Fed during open market operations as a means of monetary policy.

The gravest risk is that the surge in inflation might force the Bank of England to tighten monetary policy sooner than expected.

In a financially driven economy, it takes vigorous oversight and a responsible monetary policy to prevent bubbles.

The Bank of England has been conducting a much more aggressive monetary policy than the ECB.

This was achieved by currency market responses to the emergency easing of monetary policy precipitated by the banking crisis.

This is an issue which must be dealt with economically as the ECB's monetary policy is drafted with the overall needs of the euro zone.

As a result the SNB is likely to pursue a tighter path for interest rates and monetary policy over the next few years.

The main issue is to work out whether China's monetary policy transmission mechanism through real estate prices is effective.

Entrusting monetary policy to an independent central bank promised to be a perfect way to counter the political pressure to print money.

Germany would no longer be able to influence the euro area's monetary policy.

But if China's economy shows signs of slowing, the monetary policy makers have ways and means of neutralizing its impact.

Monetary policy may be a blunt tool to deal with asset bubbles. But that does not mean it is irrelevant.

On this base, made a empirical analysis of the credit transmission channel of monetary policy effects.

Bernanke's is the opening speech and is titled "Monetary Policy Objectives and Tools in a Low-Inflation Environment" .