I see little evidence in their analysis to suggest that a monetary policymaker should see financial
stability risks as being in any way material.
Not exact matches
In its latest Annual Report, it argued that «even if inflation does not rise, keeping interest rates too low for long could raise financial
stability and macroeconomic
risks further down the road,
as debt continues to pile up and
risk - taking in financial markets gathers steam.»
«Although it has acted swiftly on the latest UN sanctions, China is unlikely to go so far
as to fully implement new sanctions that, in its judgment, would
risk substantially undermining the economic well - being or social
stability not just of North Korea, but also of the Chinese population near the North Korean border, which relies heavily on such trade,» she said.
«These attacks represent a
risk to global markets in 2017 by threatening to upend central banks» roles
as technocratic institutions that provide financial and economic
stability,» according to Eurasia Group.
Local governments were identified
as a major
risk to China's financial
stability, partly due to their lending from the «shadow banking» sector and debt accumulated over the past years to upgrade infrastructure across the country.
Several analysts have said that the global scope of the penalty, combined with the use of national security
as an excuse, raises the
risk of a cascading series of reprisals that threatens the
stability of the post-Second World War trading system.
Description: The October 2013 Global Financial
Stability (GFSR) Report examines current
risks facing the global financial system
as it undergoes a series of transitions along the path toward greater financial
stability.
The October 2013 Global Financial
Stability (GFSR) Report examines current
risks facing the global financial system
as it undergoes a series of transitions along the path toward greater financial
stability.
Vulnerabilities in the household sector continue to edge higher while overall
risks to financial
stability are evolving
as expected.
Its descent into chaos should serve
as just the latest cautionary tale to other countries that are willing to
risk stability and prosperity for even more socialism.
Under certain conditions,
as long
as monetary policy has a larger effect on inflation than it does on financial
stability risk and macroprudential policy has a larger effect on financial
stability risk than it does on inflation, there would be no need, in theory, for the agencies responsible to coordinate their actions explicitly.
Accordingly, the Governing Council agreed that acting at this time was consistent both with the Bank's primary mission — the pursuit of its inflation target —
as well
as helping to manage financial
stability risks, even if there could be some increase in financial vulnerabilities in the process.
Stock valuations will need to be watched closely in the medium term
as we remain vigilant against a buildup of financial
stability risks.
The GFSR begins with the observation that «
Risks to financial
stability have increased since the April 2012 GFSR,
as confidence in the global financial system have become very fragile.»
If the external shocks seemed to pose financial
stability risks, macroprudential measures might be introduced
as a complement or backstop to existing regulations and oversight of domestic financial systems.
These countries share other weaknesses
as well: excessive fiscal deficits, above - target inflation, and
stability risk (reflected not only in the recent political turmoil in Brazil and Turkey, but also in South Africa's labour strife and India's political and electoral uncertainties).
Financial
stability risks, especially in the household sector, remain an area of concern but should diminish
as the economy strengthens.
Most observers of the Australian (and others») experience with financial liberalisation have concluded that: (i) ideally, good
risk management practices — including hedging — would be established before full liberalisation, so
as to mitigate subsequent
risks to financial
stability; but (ii) it was difficult to develop such practices until entities were actually exposed to some
risk; and (iii)
as a result, a somewhat disruptive period of learning by your own mistakes was inevitable.
As a result, we believe that the risks to financial stability stemming from bitcoin are negligible — at least as of toda
As a result, we believe that the
risks to financial
stability stemming from bitcoin are negligible — at least
as of toda
as of today.
Meanwhile,
risks to financial
stability are evolving
as expected.
Meanwhile,
as financial vulnerabilities in the household sector continue to edge higher,
risks to financial
stability are evolving
as expected.
Of course, the Fed's very recent caution has been warranted, given the first quarter's market volatility and economic weakness
as well the ongoing
risks to global financial
stability, particularly out of China.
Employee owners may face less total
risk than other employees because employee ownership increases employment
stability and firm survival,
as reviewed above.
What about the argument that the equity -
risk premium (the premium that investors demand over
risk - free assets such
as government bonds) has fallen close to zero because of greater economic
stability?
«
As a result, we believe that the risks to financial stability stemming from bitcoin are negligible - at least as of today.&raqu
As a result, we believe that the
risks to financial
stability stemming from bitcoin are negligible - at least
as of today.&raqu
as of today.»
In the longer run, potential
risks in the field of financial
stability may emerge
as well.
«RBC GAM's investment approach is characterized by fundamental research and rigorous discipline, along with a focus on
risk management and portfolio construction, all within a team - oriented structure,» said Dan Chornous, chief investment officer, RBC Global Asset Management Inc. «Habib and his team fit seamlessly with our approach,
as demonstrated by their strong investment results and
stability of returns, with notably solid performance in down markets.»
In recognizing the catalysts behind the public's persistence to save and reluctance to spend, additional analysis by policymakers should focus on the efficacy of further rate cuts on spending and investment,
as well
as potential «roundabout» benefits of a more normal rates regime to affirm support toward the public's saving objectives, with the end goal of boosting public's
risk sentiment and perceptions of future economic
stability.
«In the longer run, potential
risks in the field of financial
stability may emerge
as well,» they continued.
Most recently, though, on January 7, 2017, in a speech at the American Finance Association, you seemed to step out of that centrally casted character, almost coming across
as an iron fist in a velvet glove: «The bottom line is that there has not been an excessive buildup of leverage, maturity transformation, or broadly unsustainable asset prices... Overall, I do not see leveraged finance markets
as posing undue financial
stability risks.
The Federal Reserve has always been mindful of potential imbalances and distortions, or commonly referred to
as financial
stability risk.
The limitations of macroprudential policies reflect the potential for
risks to emerge outside sectors subject to regulation, the potential for supervision and regulation to miss emerging
risks, the uncertain efficacy of new macroprudential tools such
as a countercyclical capital buffer, and the potential for such policy steps to be delayed or to lack public support.14 Given such limitations, adjustments in monetary policy may, at times, be needed to curb
risks to financial
stability.15
To be sure, you have comported yourself
as a consistent moderate, backing the consensus crafted by Janet Yellen that interest rates should be raised slowly so that labor markets can recover, that
risks to financial
stability are muted, and that new regulations make the economy safer.
The below chart illustrates U.S. oil production (in gold) vs. FED's balance sheet (in blue), and how overproduction from accommodative monetary policy resulted in the sharp decline in oil prices, creating a systemic
risk that was again transmitted from financial and commodity markets to the real economy (in job losses and slow growth in Texas and other oil producing states,
as well
as the decline in headline inflation, pushing the Federal Reserve further from the price
stability objective):
There may have been a financial
stability case for raising rates six or nine months ago,
as low interest rates were encouraging investors to take more
risks and businesses to borrow money and engage in financial engineering.
The move was widely seen
as a further sign of the shifting priorities of the Chinese government, with more of a focus on
stability and
risk management, rather than on the creation of additional debt in order to sustain previous levels of growth.
Calomiris proposes (1) internal governance reforms that would decentralize power within the Fed and promote diversity of thinking; (2) policy process reforms that would narrow the Fed's primary mandate to price
stability and require the Fed to adopt and disclose a systematic approach to monetary policy; and (3) other reforms that would constrain the Fed's asset holdings and activities so
as to avoid actions that conflict with its monetary policy mission and that
risk undermining its independence.
A more balanced policy mix might also avoid some of the costs of very low interest rates, such
as potential
risks to financial
stability, without sacrificing jobs and growth.
China's economic growth target for 2017 was announced by the country's leadership
as around 6.5 %, a move widely seen
as a further focus on
stability and
risk management, rather than on the creation of additional debt in order to sustain previous levels of growth.
When volatility itself serves
as a proxy to size this
risk,
stability reinforces itself until it becomes a source of instability.»
Given Chair Yellen's recent remarks, we question whether the Fed remains
as confident in the effectiveness of QE, or remains unaware of the growing
risks to financial
stability.
There are
risks to all this, of course,
as the global financial crisis made clear; but when done judiciously, in a well - regulated financial system, we believe such market - based credit solutions can help encourage growth and
stability.
Again, if one actually believes that zero interest policy is helpful to the economy more than it creates harm through financial
stability risks (and we certainly view the
risks as dominant), it follows that the FOMC may indeed be put on hold for a while.
This enhances safety and
stability,
as well
as reduces the
risk of contamination and product loss.
The economic
stability of the U.S. agriculture
as a whole
as well
as the individual vineyard and grower is promoted through the system of crop insurance by the USDA
Risk Management Agency.
Dairy products are New Zealand's largest commodity export and lower global prices are putting pressure on the nation's dairy farmers, weighing on the outlook for economic growth and putting dairy sector debt on the Reserve Bank's radar
as a growing
risk to financial
stability.
Organic matter content is usually higher in organically - managed soils, indicating higher fertility and
stability of organic soils
as well
as moisture retention capacity, which reduce the
risk of erosion and desertification.
A failure to address joint
stability and mobility, flexibility, core strength, balance and proper mechanics will significantly increase
risk of future injury, especially
as a deficiency in one of these five areas may have been the main cause of the ACL injury in the first place.
Discontent brought about by bin Salman's reforms may boost their support and increases the
risk of further attacks occurring, with potentially disastrous results for the
stability of Saudi Arabia and the region
as a whole.
Moreover, there is increasing recognition that the health of sectors, such
as banking, depend upon there being a diversity of ownership forms, in order to balance
risk with
stability, short term with long term decision - making and to provide for financial inclusion.