Sentences with phrase «financial imbalance»

As a result, legitimate threats of socialism (and fascism) emerge because of the financial imbalance in society.

In response to a question about whether a rate cut amounted to pouring gasoline on the overheated housing market, Poloz said «We admit that these conditions are likely to cause financial imbalances,» in some cases, but that the Bank's primary goal is to ameliorate the «financial shock» to the economy caused by the drop in oil prices.

Also unsurprisingly, Federal Reserve Bank of Kansas City President Esther George, dissenter - in - chief at the bank, voted against the motion to stay the course, citing «economic and financial imbalances,» as well as, further down the road, «an increase in long - term inflation expectations» as reasons for concern.

Confronted with the choice of whether to «lean» or to «clean» — leaning against emerging financial imbalances by keeping interest rates higher than they otherwise would be or cleaning up in the event the risks they create are realized by providing stimulus — central bankers at that time generally agreed that cleaning would be best.

When the economy is hit by a large and persistent adverse shock, should we accept greater downside risks to inflation to avoid exacerbating financial imbalances?

Empirical research shows that a buildup of household debt in the economy makes a financial crisis more probable, so we wanted to understand the costs and benefits of leaning against financial imbalances through tighter monetary policy.

Bean C (2003), «Asset Prices, Financial Imbalances and Monetary Policy: Are Inflation Targets Enough?»

Rather I would argue that the current situation reinforces the idea that the standard operation of monetary policy should continue to be directed at the inflation target, but that it needs to be supplemented by other tools to address the ever - present threat of financial imbalances.

A final lesson I must touch on is that very low interest rates — and the unconventional monetary policy tools that can be deployed to enhance their effects — tend to create financial imbalances that can grow through time.

But the dynamic effects of those growing financial imbalances on the future economy must be taken into account by policy - makers — and that is a complex task, indeed.

I view the underlying insight as a healthy realization by market participants that the risks are two - sided: Unsustainably strong growth that leads to excessive inflation or financial imbalances is now as much a risk as growth that falls short.

In contrast, it may be more helpful to think of risk as increasing during upswings, as financial imbalances build up, and materializing in recessions.»

This was not the only view, however, and some policymakers had argued for a number of years that there were indicators that could be used to detect financial imbalances and that in some circumstances policy settings should take these imbalances into account.

-- FOMC minutes show uncertainty and concern about markets are affecting officials» decision - making — Officials were cautious when evaluating market conditions and the «damaging effects on the economy» — Worry about «potential buildup of financial imbalances» and a sharp reversal in asset prices» — Members seem oblivious to impact of inflation on households and savings — Physical gold and silver remain the only assets for real diversification and safety

What is more concerning is that the world's most powerful central bank is only now wondering about financial imbalances in the market.

The same can be said of the FOMC and their apparent ignorance of the threat of «financial imbalances» for the last decade.

Really, why the sudden concern about financial imbalances?

«While we have not seen the type of large credit expansions that would be most worrisome for [Federal Reserve] officials concerned about financial imbalances, there are now some signs of speculative behavior in financial markets, e.g. the cryptocurrency boom.»

The U.S. economy will shift into higher gear next year, but financial imbalances in the credit markets and cryptocurrencies could weigh on an otherwise robust outlook, according to Goldman Sachs Group Inc. analyst Jan Hartzius.

Nonetheless, Basel III can't prevent the formation of all financial imbalances, such as those in housing markets.

The crisis showed us how financial imbalances in one sector of one economy could be amplified and propagated across the entire financial system, leading to the worst global downturn since the Great Depression.

In a perfect world, we would have a macroeconomic model sophisticated enough to capture the emergence and resolution of financial imbalances, along with their related impacts on the real economy.

Current policy may be creating financial imbalances now, and lack of incentive for governments to get their own houses in order.

In light of the improving economy, Mr. Hoenig was concerned that a continued high level of monetary accommodation would increase the risks of future economic and financial imbalances and, over time, would cause an increase in long - term inflation expectations that could destabilize the economy.

Voting against the action was Esther L. George, who was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long - term inflation expectations.

Inflation as disequilibrium or financial imbalances?

First, the United States — the declining hegemonic power but still the leading driving force of the global capitalist economy — has been characterized by growing internal and external financial imbalances.

Officials worried about financial imbalances and «overheating,» while at the same time acknowledging benefits that could come from more people participating in the work force.

Not exact matches

«True, there are encouraging signs of economic recovery in those advanced economies most affected by the global financial crisis which erupted in 2008... [but] the report finds that those economic improvements will not be sufficient to absorb the major labor market imbalances that built up in recent years.»

Vulnerabilities linked to greater imbalances in regional housing markets and the continued rise of household debt were higher than they were six months ago, the bank said in its latest financial system review.

Circumstantial and anecdotal evidence suggest that these capital inflows have had a large and growing influence on the Canadian housing market, whose imbalances continue to represent a key risk to the Canadian economic and financial outlook.»

It is the rare combination of a simultaneous impact of hugely restrictive fiscal policies, gravely damaged channels of financial intermediation and crippling trade imbalances in especially depressed segments of the world economy - the euro area - where there is an obvious need for a strong stimulation of domestic demand in countries of that region whose trade surpluses range from 2 percent to nearly 9 percent of gross domestic product (GDP).

The Report draws out the financial ramifications of economic imbalances highlighted by the IMF's World Economic Outlook.

The Bank highlights three vulnerabilities in the financial system: the elevated level of household indebtedness, imbalances in some regional housing markets and the fragility of liquidity in fixed - income markets.

One of the root causes of the financial crisis was global imbalances: America's super-sized current account deficit and China's equally massive surplus.

Because I have long argued that these reforms would at best reverse the process by which the imbalances were created (especially the elimination of the financial distress «tax») if the balance sheet approach to rebalancing were the appropriate model, and are implicit in the trade - off among three outcomes I list above, they are at least consistent with what I believe is the correct analysis.

I do not think that a slightly tighter setting of interest rates would have prevented the development of the imbalances that have led to the current financial crisis.

This belief is so powerfully embedded in the standard equilibrium models most economists use that, strangely enough, even those of us who described the imbalances in one paragraph and in the very next paragraph insisted that a crisis was unlikely — in China's case because of the government's very high credibility and its role as financial guarantor — were automatically assumed to be predicting an imminent crisis.

What is more, three decades of financial repression and an undervalued currency have left Chinese economic entities heavily reliant on debt to fuel growth and heavily dependent on a current account surplus to resolve domestic demand imbalances.

Current account imbalances (1) provide a misleading picture of the global pattern of financing flows and intermediation and (2) do little to inform about potential risks to financial stability.

Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to a build - up of future imbalances and increase risks to longer run macroeconomic and financial stability, while limiting the Committee's flexibility to begin raising rates modestly.

In Part I of our series, we talked about the value of women investing in women - run VCs as a first step towards fixing the gender imbalance of the 99 % male «true VCs» in venture capital — and thereby unlocking the higher financial returns of women - led companies.

The Federal Reserve has always been mindful of potential imbalances and distortions, or commonly referred to as financial stability risk.

The current investment policies of these institutions perpetuate a cycle of investing that not only immortalizes the gender imbalance, but also results in missing out on the financial outperformance of first - time, smaller and diverse VC funds.

If institutional investors don't change their approach, the current gender imbalance won't change for decades — and these institutions will continue to miss out on the financial benefits of diversity.

Even worse, no one (including the Federal Reserve Board) understood that the expansion was based on unsustainable trade imbalances, non-credit worthy mortgage lending, non-transparent financial instruments, and unlimited and uncollateralized leverage.

If we accept that properly implemented macroprudential policies can help to effectively combat financial vulnerabilities by strengthening resilience in the financial system and reducing systemic risk, this supports the view that authorities should look to these policies first when imbalances arise, before turning to monetary policy.

There are a million moves, strategies, investments, accidents, strokes of luck, strokes of genius, strokes of foolishness, a thousand little injustices, unfairnesses and secrets, scores of prayers and muscles, countless imbalances, that factor into our financial situation.

It follows that, differently from what happened in the US — where the various states have imbalances comparable to that of the countries using the euro — the financial market lost confidence in the sustainability of the Eurozone but not in the sustainability of the «dollar - zone».

While highlighting some of the unhelpful provisions in the Constitution, Governor Ambode attributed the imbalance in the financial resources of States and Local Governments to the current unhealthy revenue sharing formula which is heavily tilted in favour of the Federal Government.