And it is why no policy adjustment, short of debt cancellation or hyperinflation, will make any damned difference.
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Automatic or independent fiscal-policy adjustment (on top of so-called automatic stabilisers that operate in any case) may be difficult to develop.
However, as inflation fears started to subside the RBA left rates on hold for a sixth meeting and in June said that inflation was likely to remain in its desired band and appeared to indicate that its policy adjustment process was over.
With inflation already likely to have peaked and with the ECB predicting a return to beneath the 2% target ceiling the policy adjustment process is becoming less of a factor, while one good shock is all it might take to unsaddle already fragile European confidence that could derail the euro once more.
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Bernanke responded that in his more than four years on the Fed's policy-making board, he had never heard anyone suggest any adjustment in policy should be made because of an upcoming election.
Given banker fears and uncertainty, particularly over the adequacy of their capital, bankers would likely regard the loss of those reserves as a significant tightening of monetary policy rather than a mere technical adjustment.
And exchange rate adjustment has usually been a key policy tool to ensure this re-allocation.
Former universities minister Lord Triesman, winding up for Labour, said the Browne report was "not an adjustment to finance but a fundamental policy shift".
Education policy needs to aggressively adopt the same kind of risk adjustment measures, if we hope to identify which high schools are truly doing the best job of educating their students and preparing them for the future.
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Intelligent discretion in monetary policy is capable of doing better than automatic currency-board adjustment.
The Goldilocks policy, as the IMF calls it, urges countries to embark on a gradual fiscal adjustment in the short term, if the markets allow it, coupled with a credible medium-term debt-reduction plan.
But easy monetary policy, by bringing forward spending from the future to the present, means that the ultimate adjustment of borrowing and spending will be even greater.
"Financial forces have been dominating the adjustment process in the euro area, " Mr. Gaspar told an audience of economic policy makers in Brussels on Tuesday.
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