Sentences with phrase «in contractionary»

Not exact matches

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.»

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).

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.

In fact, unconventional monetary policy has been contractionary.

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

It is apparent that the stance of monetary policy in place through the past couple of years has assisted the economy through the period when the contractionary forces have been at their most intense.

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).

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 aContractionary 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 acontractionary 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.

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

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.