Sentences with word «contractionary»

If this occurred, it would have an additional contractionary effect on the export sector, as well as further dampening inflation.

Central banks use contractionary monetary policy to reduce inflation.

An Australian manufacturing gauge showed improvement but remained in contractionary territory, according to data from the Australian Industry Group.

The most glaring development in the survey was the fact that new export orders sank deeper into contractionary territory.

This is the sort of scenario which we would all dread because it would impart a sharp contractionary force to the economy.

But it is extremely important to understand: it is the inflation - adjusted risk - free interest rate in an economy — the real interest rate that is neither stimulative nor contractionary when an economy is operating at full capacity without cyclical forces at play, thus balancing desired savings and investment.

Comparing these levels to the average level since 1948, current profit levels are 40 percent above the average, with this average including an extended contractionary period in the 70s and 80s.

Although Spain's manufacturing purchasing managers index ticked up slightly last month to 44.5, it is still the seventeenth month in a row that the index has recorded a sub-50 contractionary reading.

While in principle exchange rate movements should not affect the level of global demand, further dollar appreciation is likely to be contractionary for the global economy because of the uncertainty it engenders.

As a result, fiscal policy became contractionary just when it needed to be expansionary.

In the U.S., as well as in other countries — especially in Europe — fiscal policy was typically expansionary during the recent recession and early in the recovery, but discretionary fiscal policy shifted relatively fast from expansionary to contractionary as the recovery progressed.

Rates tend to fall when the Federal Reserve pursues expansionary monetary policy and contract when it pursues contractionary monetary policy.

Three of the PMI's seven activity subindexes expanded in September, with production, deliveries and sales all recovering from steep contractionary results in August.

This could be considered contractionary monetary policy.

The expansion of P / Es during the 1982 - 2000 bull market was responsible for 75 % of market gains; The present contractionary P / E cycle is partly responsible for the lowering the P / E of most stocks.

The Federal Reserve uses the growth rate to decide whether to implement expansionary monetary policy to ward off recession or contractionary monetary policy to prevent inflation.

The fear of higher interest rates is rooted primarily in its contractionary effect on lending and money supply.

(The Bank of Canada estimates that the nominal neutral interest rate, or the rate at which the level of interest is neither stimulative or contractionary, is between 2.75 % and 3.75 %, compared with 4.5 % and 5.5 % before the crisis.)

If the government had imposed austerity, it may still be the case that the Bank of Canada could have and would have implemented measures that offset a contractionary fiscal policy during a recession and when interest rates are at zero — the debate over whether that would have worked is ongoing and lively.

Adding to the contractionary impact is a downturn in established house prices which, according to one major index are down about 9 per cent from their peak, and still falling (Graph 4).

Our understanding of the economy and monetary policy are underpinned by the concept of the natural interest rate — that is, the short - term real (inflation - adjusted) interest rate that balances monetary policy so that it is neither accommodative nor contractionary in terms of growth and inflation.

If policy had been set to ensure that inflation did not rise above 3 per cent, the rise in interest rates would have exacerbated the contractionary shock to foreign demand.

Thus «the most reliable indicator of the stance of monetary policy, nominal GDP, is already showing the contractionary impact of the Fed's policy decisions,» says Lacey, «signaling that its plan will result in further monetary tightening, or worse, even recession.»

For our businesses and households as users, this is a contractionary and inflationary impact.

Thus, the period where the Australian economy was experiencing a contractionary impact from abroad and where the outlook was for weaker growth and sub-2 per cent inflation has now well and truly passed.

Contractionary policy is contractionary and if there is a risk of a slowdown or recession in the next few years that is surely an argument against contractionary policy.

If a government announcement to adopt a contractionary policy stance is not seen as credible, then actually following through on the promise can prove very costly.

The ability of the central bank to buy a bond directly from the govt would avoid any contractionary effects while the new money used to pay claims clearly increases the money supply which may help during downturns (when this helicoptering mechanism should be considered for use to some degree).

These actions are contractionary, working at cross-purposes with the automatic stabilizers.

There is a contractionary aspect to this at least in a top - down investor view of the world (perhaps the term «crowding out» captures the shift away from one private interest giving up on their opportunity to use this cash in other ways).

At that point, they move their money out of retail and into more stable sectors, such as utilities, which hold their value better during the contractionary phase.

To repeat, the policy of very low interest rates has been contractionary, not expansionary.

In fact, unconventional monetary policy has been contractionary.

Based on its review, it will decide whether to use expansionary or contractionary monetary policy.

Using the change in the underlying cash balance between financial years as an approximate indicator of the fiscal impact, the Commonwealth Budget is expected to add to growth by around 1/4 per cent of GDP this financial year, compared with a contractionary effect of around 3/4 per cent in 2002/03 (Graph 32).

The risk presented by these developments is that, the longer they go on, the larger will be the contractionary effect on the economy when they inevitably turn.

Contractionary monetary policy slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation; while sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.

As noted above, the contractionary impulse arising from the Asian crisis has occurred in two stages — an initial, rapid contraction in the economies first affected by the regional financial instability, and a more delayed slowing of other economies in the region.

Broadly speaking, there are two types of monetary policy, expansionary and contractionary.

So if, for example, it were the case that a «credit crunch» occurred simultaneously in many countries, there would be a contractionary impact around the world even before any spillover effects via trade got going.

Cutting government spending ALWAYS has a contractionary effect on an economy.

Floss noted the proposal for FY2015 is contractionary, since it cuts $ 2 billion in expenditures and only reduces taxes by $ 480 and will therefore be a drag on economic growth in New York State.

Broadly speaking, there are two types of monetary policy, expansionary and contractionary.

Contractionary monetary policy slows the rate of growth in the money supply or outright decreases the money supply in order to control inflation; while sometimes necessary, contractionary monetary policy can slow economic growth, increase unemployment and depress borrowing and spending by consumers and businesses.

Private estimates of the negative impact of the new housing measures on overall economic growth vary, but most expect the contractionary effect to be roughly a 30 - to - 50 basis point reduction in growth over the next twelve months.

One popular method of controlling inflation is through a contractionary monetary policy.