Floating the yuan would also relieve the monetary authorities of self-defeating exchange rate intervention.
Global monetary authorities are now following the U.S. Federal Reserve's lead in chasing price stability.
Until Mr Greenspan raises interest rates, China's monetary authorities will find it difficult to do so.
Since 1996, membership has expanded from 32 to include nine more monetary authorities in Asia, Latin America and Europe.
The financial services industry is also adopting the technology, which is often required by central banks and monetary authorities.
Monetary authorities should move hastily to fix this most obvious of monetary mistakes through policies meant to strengthen the dollar.
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Rising inflation will narrow the scope monetary authorities have to enact policy.
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But when monetary authorities seek to devalue the money we earn, they create a disharmony with trade, plus they eviscerate our paychecks.
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Namely, the central banks and other sundry monetary authorities strove to hoard gold, to collect it like they had a fetish for it.
This would require the monetary base (rupiah notes, coins, and deposits with the monetary authorities) to be fully backed by reserves of dollars.
Lately, the monetary authorities in Slovakia, which has become an unlikely exemplar of democracy (see article) and economic reform, have been the region's busiest.
Monetary authorities did little to stimulate aggregate demand, because they were in a dire situation: they had driven short-term rates to near zero to fight deflation.
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Monetary authorities and intelligence agencies in Europe, Asia and the U.S. are now putting great pressure on all financial institutions to come clean or risk exposure.
Indeed, investment is on its own very risky, and when monetary authorities are devaluing our money, investment brings with it even greater risks for obvious reasons.
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The monetary authorities look to the markets to hold a mirror up to the economy, but what is reflected back is simply the bank's own prior beliefs.
Inflation is the process by which monetary authorities devalue their currency, and as Zimbabwe is teaching us now, one way to devalue is to overissue the currency in question.
The EU debt situation shared the spotlight with China Monday as Chinese monetary authorities loosened monetary policy over the weekend by reducing reserve requirement ratios on domestic bank reserves.
"Both the US and Japanese stock markets are seen requesting a cut in interest rates to their monetary authorities, " said Hiroyuki Nakai, investment research manager at Tokai Tokyo Securities.
The EU debt situation is also sharing the spotlight with China Monday as its monetary authorities loosened monetary policy over the weekend by reducing reserve requirement ratios on domestic bank reserves.
The good news is that weak inflation in China, due to lackluster domestic demand and some lower commodity prices, will allow Beijing monetary authorities to keep interest rates low in the coming months.
With the unemployment rate still above 9%, and federal debt at record levels, this latest error by the monetary authorities is likely to be the most costly since the Great Inflation of the 1970s.
The Chinese monetary authorities cannot afford such patience.
All the Fed has to do is look at the market price of gold: If it moves outside a certain narrow range, the monetary authorities should react by either tightening or loosening the money supply.
Advocates of foreign-exchange intervention are inspired by the example of the Japanese monetary authorities, who arrested an earlier slide of the dollar with massive purchases of the currency in the first three months of the year.
As the well-being of each declines, the wealth enhancement that is the result of trade becomes less frequent, and worse, often leads to further devaluations as monetary authorities engage in more mischief to ease the economic hardship wrought by previous devaluations.
It also suggests that companies are amassing the materials either as a hedge against inflation or as a means of building up collateral with which to get more loans at a time when monetary authorities are attempting to tighten the credit supply.
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To most practitioners it would appear that the accelerated undershoot of the euro that was taking place prior to intervention was precisely fuelled by position-taking on the assumption that the monetary authorities had no stomach for co-ordinated intervention (too close to America's election).
He looks at the difference between conventional Treasury rates and inflation protected Treasury rates, forgets that he and his monetary authorities have used their powers to set those Treasury rates at artificially low levels, and then concludes that the market expects low inflation.
Signs of respectful reconsideration of the gold standard are appearing in many greatly respected financial institutions, from the Bank of England, to the Bundesbank and Deutschebank, to Chinese monetary authorities , Russian officials, and the central bank of Poland.
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