Sentences with phrase «contractionary effect»

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.

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

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.

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

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 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).

The real exchange rate has appreciated in recent months, but the strong terms of trade are likely to have offset its contractionary effects.