With better
control over monetary policy and more efficient markets, the likelihood of high unexpected inflation and high risk premium is less likely.
When the exchanged rate is fixed, there is typically no intervention from the authorities or
over monetary policy resolutions that will influence the exchange rate.
Singapore's sovereign wealth fund GIC, among the world's biggest investors, said it was turning cautious and expected returns to slow over the next decade, given high valuations,
uncertainty over monetary policy and modest economic growth.
Mr Weber's
concerns over monetary policy were supported by Nouriel Roubini of the Stern School at New York University, who had backed the initial moves towards unorthodox policies such as quantitative easing in the financial crisis.
Since the government of the day has many goals — getting re-elected not the least of them — it can't always be counted on to carry out its promises: everyone knows that other, more pressing priorities may take
precedence over monetary policy.
Not the usual response that you expect to loosening monetary policy, but these are unusual times, when credit spreads
dominate over monetary policy, even on high quality lending and short term.
After this is done, all of Europe would be in better shape economically, and Europe would be more, not less united, because they don't have to
argue over monetary policy.
Next, the Court had to determine whether the amendment was confined to Part Three of the Treaty and thus had to establish whether it improperly encroached upon other EU policies outside of Part Three, namely the EU's exclusive
competence over monetary policy and the power to coordinate economic policy, enshrined in Part One TFEU.
However, alongside this regulatory concern, governments from Sweden to China are embracing digital currencies at a national level, to give them more power and greater
control over monetary policy.
In normal times, the
debate over monetary policy is between «hawks» who want the Fed to emphasize its inflation target, and «doves» who want it to focus on lowering unemployment.
If Iceland ditched its currency, it wouldn't have control
over monetary policy to boost the economy, leaving layoffs as the primary way to deal with downturns.