Sentences with phrase «monetary policy failures»

Not exact matches

But people familiar with the deliberations say Williams» monetary policy expertise became more important, because of the failure of the White House to nominate a vice chairman for the Federal Reserve.

The reason Keynesianism got such a boost post-crisis was not for any real - world examples of its success — the list of its failures, by contrast, is lengthy — but because of the assertion, accepted far too quickly with far too little evidence, that monetary policy, at the fabled Zero Lower Bound (interest rates of near zero) had lost its effectiveness.

If there is a danger that monetary policy will be seen as «too difficult», there is also a risk that too much will be expected of it or, at least, that its success or failure will be judged against an impossibly - high standard: it can't cure the business cycle; it can't reduce inflation costlessly; and it can't be operated with surgical precision.

First, since monetary policy acts only with a lag failure to raise rates would risk an overheating economy and an acceleration of inflation possibly necessitating a sharp and destabilizing hike in rates later.

David Blanchflower, who is a former member of the Bank of England's monetary policy committee and a critic of the Chancellor, has labelled George Osborne a «failure» over Britain's credit downgrade:

That is the definition of a liquidity trap — the total failure of monetary policy.

But when failures are quickly bailed out through overly easy monetary policy, as well as a fiscal policy that favors debt over equity, debt grows like crazy, because there is little to restrain it.

This is an ugly situation, one that is the product of sloppy monetary policy, poor regulation of financial companies (for two decades), poor risk controls, overlending by government institutions, and a cultural failure where we borrowed too much and saved too little.

The standard strategy of saying Who Could Have Known after pissing away mountains of monetary resources is an equally historic policy failure.