Sentences with phrase «to increase the money supply»

A form of monetary policy used by central banks to increase the money supply by buying government securities or other securities from the market to liquidity.
In recent years, the monetary easing policy has suppressed interest rates and increased the money supply in an effort to promote increased lending and liquidity.
This method of increasing the money supply invariably led to economic booms that were just as invariably followed by economic busts.
Since credit is the largest component of the money supply by far, colloquially people talk about the Federal Reserve increasing the money supply as printing money.
Expansionary monetary policy increases the money supply in order to lower unemployment, boost private - sector borrowing and consumer spending, and stimulate economic growth.
There is no limit to the extent to which the Bank of Japan can increase the money supply if it wishes to do so.
The Bank will respond by increasing the money supply until inflation returns to the 2 % level.
The ability of the central bank to buy a bond directly from the govt would avoid any contractionary effects while the new money used to pay claims clearly increases the money supply which may help during downturns (when this helicoptering mechanism should be considered for use to some degree).
One way to * define * a permanent increase the money supply, introduced via helicopter drop, is to assume that the government guarantees that taxes and government spending will not change, and assume that people believe those guarantees.
If central banks implement QE and increase the money supply too quickly, it can lead to inflation.
The amount of newly increased money supply peaked in 2012, totaling over 26 trillion yuan (US$ 4.1 trillion), with China accounting for nearly half of it.»
At present, the Fed has done little to increase the money supply directly, but has encouraged the banks to lend more.
Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.
You don't need to be an economist to understand that increasing the money supply eventually leads to inflation, which in turn erodes the value of your money.
Each bank loan increases the money supply in a fractional reserve banking system.
Fractional reserve banking enables banks to increase the money supply through lending excess reserves.
That explains the devaluation of the krona, as the government can only service its debt if it keeps increasing the money supply, resulting in high inflation.
«We are working on an algorithmic strategy to increase the money supply automatically as usage of HFC increases, probably using an oracle monitoring the exchange rate.
Governments love to increase the money supply so the whole economy is incentivized to spend more before their money depreciates.
When the Federal Reserve increases the money supply, the federal fund's rate gets lower, so the interest rates decrease.
e.g. use my suggestion elsewhere on stimulating the economy by increasing the money supply by printing money not loaning it, giving it to people but requiring them to spend it on infrastructure that reduces ghg concentrations in the atmosphere.
Expansionary monetary policy increases the money supply in order to lower unemployment, boost private - sector borrowing and consumer spending, and stimulate economic growth.
In this sense, inflation can also be called a forcible way of increasing the money supply (by fractional reserve banking, by monetization of government debt, by counterfeiting, by forgery, etc.) as distinct from the «natural» production of money through mining and minting.
The program, which began in November 2008 and ended in 2014, increased the money supply in the nation's financial systems.
My friend, shaken but now awake said, «I'm sorry Professor, I missed the question but the answer is increase the money supply
Richard Koo, chief economist of Nomura Research Institute, says there is already enough liquidity in the Japanese banking system to increase money supply five times, but the private sector is not borrowing.
He said there was already enough liquidity in the Japanese banking system to increase money supply five times, but pointed out that the private sector was simply not borrowing.
We should expect the Bank of Canada to respond to these deflationary pressures by increasing the money supply.
The Fed might increase the money supply by lowering interest rates if the economy is growing slowly.
In response to economic weakness, central banks often enact policy that increases the money supply, promotes inflation and reduces interest rates.
A couple of weeks back, I posted on the topic of «quantitative easing,» the policy of having the central bank aggressively purchase government (and possibly corporate) debt in the open market ostensibly to increase the money supply.
Countries had to obtain gold by running trade and payments surpluses in order to increase their money supply to facilitate general economic expansion.
Central banks are playing with fire through negative interest rates and increasing the money supply.
In particular, we know that over the long term the purchasing power of money falls due to increased money supply and rises due to increased population and productivity.
Our Federal Reserve prevents deflation by increasing the money supply and pumping more money into the economy.
Quantitative easing, initially controversial, essentially saw the U.S. Federal Reserve buy government and other market securities to lower interest rates and increase money supply.
Gold has been popular since the stimulus program was announced, as it is seen as a hedge against the inflation that could be caused by increasing the money supply and lowering of interest rates.
Buying accelerated after the financial crisis spurred global central banks to increase money supplies.
Increasing the money supply is not inherently inflationary although the long term tendency is relatively slow inflation.
Ken Thompson also dismissed arguments that the move by government would have ultimately helped in reducing the cost of borrowing in the country as it increased money supply in the system, «The only way that the government can reduce the cost of borrowing is to cut down on expenditure.
You are in an economic downturn, and you need to increase the money supply to stimulate the economy.
The program, which began in November 2008 and ended in 2014, increased the money supply in the nation's financial systems.
Quantitative Easing (QE): A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market.
Likewise, advocates of easy money seem to believe that increasing the money supply will buy you more economic output, but this requires holding V and P relatively constant.
The name of the current «money game» is «increasing the money supply».
Quantitative easing, initially controversial, essentially saw the U.S. Federal Reserve buy government and other market securities to lower interest rates and increase money supply.
Conversely, when it decreases the federal funds rate, the Fed is increasing the money supply and, by making it cheaper to borrow, encouraging spending.
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