OECD Warns of 'Jobless Recovery' Nov 21, 2009
2 per cent in 2010, "supported by improving financial conditions, an expansionary monetary policy and stronger international growth." But it adds: "The weak fiscal position makes further consolidation necessary; an announcement of concrete and comprehensive consolidation plans upfront would enhance macro-economic stability. Strengthening financial regulation and supervision would also support stability and hinder a build-up of new imbalances at historically low interest rates.". The Bank of... (BusinessWeek)
Govt set to auction ECB entitlements Nov 19, 2009
The RBI has said several times in the past few weeks that it is concerned about the impact of volatile capital inflows on India, which may have to exit from its expansionary monetary policy sooner than other countries because of inflationary pressures. But the central bank has so far not been in favour of auctioning ECB rights, arguing that quotas will be hard to administer and may crowd out smaller borrowers. (India Times)
'Strong Dollar' or 'Weak Dollar'? Oct 21, 2009
To nurture a nascent stabilizing and budding recovery, the Federal Reserve will by no means tilt towards upending the expansionary monetary policy and raising the interest rates. Sucking up liquidity at this critical time is equal to killing the recovery in the United States. (People's Daily Online, China)
De Gregorio May Keep Chile's Rate at Record Low 0.5% to Safeguard Recovery Oct 13, 2009
With negative inflation and trying to bring back inflation to our target, we have an extremely expansionary monetary policy, De Gregorio said in Oct. 5 interview from Istanbul. 2010 Growth. (Bloomberg -- Latin America)
Colombia's Central Bank Sees September Rate Cut as Last for `Near Future' Oct 10, 2009
This reduction in the benchmark rate continues the expansionary monetary policy that has been in place since the end of last year and which has allowed a persistent reduction in the interest rates for deposits and bond offers, the bank said. The board hopes that this trend will continue to stimulate economic growth in an environment characterized by a healthy financial system along with the improvement in the confidence indicators of consumers and businessmen. (Bloomberg -- Latin America)
Rising interbank deals hint liquidity Oct 10, 2009
There is a fear that a withdrawal of the expansionary monetary policy is around the corner, said Golaka C Nath, senior V-P at Clearing Corporation of India the firm that settles all government securities transactions in India. A new half year has just begun and banks want to be well armed at a time when the economy looks set for recovery, he added. (India Times)
Bernanke works onas jobless tally mounts Oct 8, 2009
It is discomforting to see unemployment worsening at a fast pace in the context of record fiscal deficits and the most expansionary monetary policy. We are saddling future generations with debt that does not even alleviate the misery of the current generation. (Asia Times Online)
Inflation rises to 0.37% on food surge Sep 25, 2009
Finance minister has ruled out the chances of a reversal in the expansionary monetary policy. Annual inflation for manufactured items was at 0. (India Times)
Export revival may benefit Germany's recovery Sep 22, 2009
BERLIN, Sept. 21 (Xinhua) -- German companies are benefiting from a revival in exports, along with the emerging global recovery, said Bundesbank, the German Central Bank, in its monthly report on Monday. German economy enjoyed 0. (Xinhuanet, China)
India's central bank faces tricky balancing act Sep 21, 2009
The Reserve Bank "is keen to exit from its expansionary monetary policy, but will wait for some time," Rupa Rege Nitsure, economist at state-run Bank of Baroda, said. AFP. (Sydney Morning Herald -- Business)
Scourge of commodityinflation returns Sep 18, 2009
Since March 2009, a highly expansionary monetary policy combined with record fiscal expansion has provided a powerful impetus to speculation and overwhelmed speculators with liquidity. Despite deep economic recession and rising unemployment that has reached 10% of the labor force in leading industrial countries, the All Commodities Price Index recovered by 31% from its bottom in February 2009, or at an annual rate of 75%, and US stock prices rebounded by 32% during March-July 2009. (Asia Times Online)
A deluded G-20 Sep 17, 2009
Unabated expansionary monetary policy will foster speculation and drive speculative prices to high levels, in turn disrupting the world economy. The G-20 ministers and central bankers should explain why fiscal deficits since 2001 and large stimuli in 2008 have failed to prevent the deep recession and the prevailing and still climbing levels of high unemployment unemployment. (Asia Times Online)
Euro to Rise Against Pound to Parity on Loose U.K. Money Policy, BNP Says Sep 17, 2009
Sterling will weaken in the coming months as the government needs to rein in spending and its central bank is likely to retain an expansionary monetary policy, BNP Paribas said. Sterling will degenerate from an investment into a funding currency, said the analysts. (Bloomberg -- UK)
New world monetary system inevitable Sep 9, 2009
And the Fed may not be able to do the trick expansionary monetary policy poses its own risks. Like it or not, out of the ashes of this debacle a new and more stable global reserve system is likely to emerge, and for the world as a whole, as well as for the United States, this would be a good thing. (Atlanta Journal-Constitution -- Opinion)
Indias economy grows 6.1% in June quarter Sep 1, 2009
Weakness in private consumption combined with looming inflation complicates the Reserve Bank of Indias exit from its expansionary monetary policy, with some economists expecting tightening measures to begin only in 2010. The RBIs dilemma, between hiking policy rates and hurting growth or staying pat but risking higher inflation expectations, only gets worse, said Nomura economist Sonal Varma. (The Star Online, Malaysia -- Business)
Fischer Rate Increase May Threaten Israeli Rebound By Strengthening Shekel Aug 25, 2009
Fischer is struggling to unwind an expansionary monetary policy while containing a rally in the shekel in a country that depends on exports for half of its ... 75 percent continues to represent an expansionary monetary policy. (Bloomberg -- Europe)
The bill will fall duefor crisis failures Aug 13, 2009
The evolution of the present crisis is but a testimony to the dramatic cost of an extended period of highly expansionary monetary policy. When houses, cars, appliances and other goods and services become essentially free (financed by zero or negative real rates of interest), an economic boom is sure to follow. (Asia Times Online)
RBI may roll back monetary expansion Aug 1, 2009
NEW DELHI: RBI governor D Subbarao on Friday made a strong case for a rollback of the expansionary monetary policy being pursued to combat the impact of the global financial meltdown, saying it could result in another bout of inflationary pressure ... RBI governor D Subbarao on Friday made a strong case for a rollback of the expansionary monetary policy being pursued to combat the impact of the global financial meltdown. (India Times, India -- Intl Business)
Verleger Says Oil to Collapse to $20 This Year on `Devastating' Crude Glut Jul 17, 2009
Prices have rebounded on expectations of a demand recovery, led by China and other developing economies, and concern expansionary monetary policy would stoke inflation and weaken the dollar. At the other end of the spectrum from Verleger, Goldman Sachs Group Inc. predicted in a report yesterday oil will rally to $85 a barrel by the end of the year, and recommended that clients buy futures contracts for delivery in December 2011. (Bloomberg)
Sweden Central Bank Unexpectedly Cuts Interest Rate Quarter Point to 0.25% Jul 2, 2009
The weak development of the economy requires a somewhat more expansionary monetary policy, the Riksbank said in a statement on its Web site. The repo rate is expected to remain at this low level until autumn 2010. (Bloomberg -- Europe)
Inflation up a tad, but still negative Jun 26, 2009
As the system is flush with liquidity and the economy is beginning to show signs of revival, the central bank is expected to reverse the expansionary monetary policy, said Soumendra K Dash, chief economist at rating agency CARE.. The Met department has already issued a warning that the crucial southwest monsoon may be below normal this year, which may affect agricultural output and pull down rural demand. (India Times)
Int'l financial, monetary systems need reform, says economist Jun 26, 2009
"For example, as part of its crisis management, the United States has adopted a very expansionary monetary and fiscal policy," Yu said, "What would be the consequences of this extremely expansionary monetary policy? When the economic situation turns around, will the Federal Reserve be able to withdraw liquidity in a timely fashion so that in the middle or long term there will be no inflation?". He said another concern is that the U.S. economy is going to raise some 3. (Xinhuanet, China)
Swiss National Bank Leaves Rate Unchanged, Pledges `Firm Action' on Franc Jun 18, 2009
The central bank must go on with its expansionary monetary policy. . (Bloomberg -- Europe)
Lockhart: We'll Proactively Raise Rates, Not Yet Jun 6, 2009
Lockhart said that with rising market concerns about inflation, he could envision the Fed eventually raising U.S. benchmark interest rates while continuing to run an expansionary monetary policy. The Fed has cut rates to near zero and pumped money into the financial system to revive lending and pull the economy out of a deep recession. (Newsmax)
Australia's Building Approvals Climb More Than Expected on Cash Handouts Jun 2, 2009
Certainly for the household sector, this is an expansionary monetary policy, Stevens said on May 19. The way households are responding confirms that. (Bloomberg -- Australia & New Zealand)
Australia First-Quarter Wages Growth Slows to 0.8% Amid Recession Concerns May 20, 2009
Bank Governor , who cut the benchmark interest rate to a 49-year low of 3 percent in April, said yesterday expansionary monetary policy and government spending will help cushion Australia from the global recession ... Certainly for the household sector, this is an expansionary monetary policy, Stevens said. (Bloomberg -- Australia & New Zealand)
* Why an eclectic and rapid response to the economic crisis is vital May 7, 2009
Thus, expansionary monetary policy via standard open-market operations by a central bank is the first item on the checklist of what to do in a financial crisis ... The problem comes when expansionary monetary policy via standard open-market operations and central-bank guarantees of orderly markets prove insufficient. (Taipei Times, Taiwan -- Sports)
Nowotny Says Reducing ECB Benchmark Rate Below 1% Is Open for Discussion Apr 10, 2009
In a situation like the current one an expansionary monetary policy is absolutely necessary, Nowotny said. If the recovery is very weak we have to continue to follow an expansive path with both monetary and fiscal policy. (Bloomberg -- Europe)
G-20 maps road for chaos Apr 1, 2009
While full employment is a priority objective, classical economists neither called for fiscal deficits nor expansionary monetary policy to resolve unemployment. Absent of labor market distortions and wage rigidities, full employment prevailed during the 18th and 19th centuries. (Asia Times Online)
Bank Negara can further reduce rate if necessary Mar 28, 2009
5% last November to the current 2%, economists say there is still room for the central bank to adopt an expansionary monetary policy to support the countrys weakening economy. They believe the central bank can further reduce the countrys benchmark interest rate as a result of the decelerating inflationary pressure, as measured by the consumer price index (CPI) that had slowed to 3. (The Star Online, Malaysia -- Business)
Massive cash injection into U.S. economy may inhibit world recovery Mar 26, 2009
Last but not least, the U.S.' expansionary monetary policy adds to the risk of stagflation - an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time. Countries all over the world will have to loosen their monetary policies - by further reducing interest rates, for example - to avoid the possible negative effects that the U.S.' monetary policies may bring them. (Xinhuanet, China)
Chinas gearing level remains lower than its regional peers Mar 19, 2009
Chinas government is also in the process of implementing an expansionary monetary policy, targeting 5 trillion renminbi, or a 16. 5% increase in new loans, according to Hung. (The Star Online, Malaysia -- Business)
Greenspan Forgets Where He Put His Asset Bubble Mar 12, 2009
A steep yield curve is a sign of an expansionary monetary policy. Rising long-term rates reflect an increased demand for credit. (Bloomberg -- Columnists)
Fiscal stimulus the way forward Mar 10, 2009
AMID the global economic crisis, countries are turning on the fiscal tap apart from maintaining an expansionary monetary policy to arrest their deteriorating macroeconomic conditions. Deficit spending that generally involves excess of government expenditure over its revenue, termed fiscal deficit, could represent an optimal policy response to the current harsh macroeconomic realities. (The Star Online, Malaysia)
Is Our Monetary-Fiscal Policy Mix Rightly Prioritized? Mar 3, 2009
Now in order to avoid lower output, a contractionary fiscal policy should be accompanied by an expansionary monetary policy. The idea is to ensure output does not decline following the fiscal contraction. (Ghana Web, Ghana)
Gold lights up Obama errors Feb 25, 2009
A similar episode occurred in the context of the widening US fiscal and external deficits and expansionary monetary policy that compelled the Richard Nixon administration to exit the gold-exchange standard in August 1971 ... The flight into gold took place in the context of negative real interest rates, widening fiscal and external deficits, and overly expansionary monetary policy. (Asia Times Online)
To spend or not to spend?: University economists weigh in Feb 12, 2009
Instead, Hafer pointed to data that expansionary monetary policy precedes economic recovery, and he favored policy actions in the form of lowered interest rates and more rapid growth in the money supply. But Brodsky argued that if you can t get monetary policy to work, (then) the only answer you ve got left is fiscal: government spending. (Mattoon Journal-Gazette, IL)
The magically deflating oil price: Is it all about speculation? Feb 7, 2009
2) Clearly, too, as the comments above point out, the expansionary monetary policy and laissez faire financial regulation left a lot of hedge fund and other money sloshing around chasing peak oil rumors and the like. When that money evaporated in margin calls and covers, the boom not only stopped but busted. (Energy Pulse, CO)
