Some outsiders believe it maintains an excessively tight policy as a way of asserting its independence, which it won at around the time deflation took hold.
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In the early 1980s, a high exchange rate, the product of tight fiscal policy and tight money, was the agent of recession and unemployment.
Yet that zero interest rate policy was evidence of an extremely tight monetary policy.
Free-market economists from Milton Friedman to Bill Niskanen believed that excessively-tight monetary policy caused recessions.
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Tight monetary policy has turned investors off to its equity market since last November.
We ran a very tight monetary policy during the first month and 20 days.
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Democrats blamed Mr Volcker for losing them the 1980 election because of his tight monetary policy.
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Mr Fogh Rasmussen also parried attempts to link the crisis to his tight immigration policy.
Really tight fiscal policy may push the Fed to become even more active, Nordvig says.
The benefits of tight monetary policy are more doubtful, and the damaging side-effects of depreciation less severe.
Meanwhile the European Central Bank will be determined to establish its credibility with a tight monetary policy.
But these flaws do not excuse the BOJ's unnecessary, destructively tight monetary policy.
The blame for the euro area's feeble growth rate lies mainly with an over-tight fiscal policy and structural rigidities.
The very tight monetary policy at the time, the Bank of England wasn't independent of the government caused the pound to spike.
The biggest problem at the moment for the sector is inflation and a tight monetary policy that is restricting lending.
But until labour markets are freed, tight macroeconomic policy is one of those shocks that can only make things worse.
Tight monetary policy, which fuelled a strong pound , acted like a dose of salts on a swathe of industrial Britain.
The villains of the Depression were the trade-killing, international-capital-flow-strangling Smoot-Hawley Tariff, an overly tight monetary policy and a catastrophic tax increase.
Thanks to the tight fiscal policy of Mr Berlusconi's finance minister, Giulio Tremonti, Italy has so far escaped the markets' wrath.
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The temptation in Japan is always to achieve this by giving in to the traditionally strong appetite for tight fiscal policy.
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But most of this drop reflects cheaper imports from Asia and lower commodity prices, rather than an overly tight monetary policy.
The problem, however, is that in 1982 most interest rates were in double digit, due to tight monetary policy in the preceding years.
And weak coalition politics undermine hopes of a tight fiscal policy or of structural economic reforms that would maintain competitiveness as costs rise.
Germany's new balanced-budget amendment to its constitution will force it to pursue a tight fiscal policy, unless the coalition circumvents it to permit tax cuts.
Mr Balcerowicz has managed to cleave to a tight fiscal policy.
But FDR worsened the financial collapse he inherited from Hoover by raising taxes, pursuing a tight money policy and failing to rescind the Smoot-Hawley trade tariffs.
At the central bank, he took lots of political heat for his tight monetary policy and wasn't asked to stay on after his term ended in 2007.
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This means that Argentina's path to restoring market confidence and improving competitiveness lies in a tough slog of tight fiscal policy and structural reforms to make the economy more flexible.
Yet the economy, and the stock market, faces important obstacles, including a flare up of the European sovereign debt crisis, tight fiscal policy, and the potential of further gridlock in Washington.
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