He said the problem is that a large component of silver is purely industrial with not so much monetary demand.
But the prospect of Chinese economic officials tightening monetary policy has negative demand implications for raw commodities, including the precious metals.
The market on Tuesday shrugged off potentially bearish news that China has again tightened its monetary policy to reduce demand for commodities.
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With stimulative fiscal and monetary policy bolstering domestic demand, China's current-account surplus has shrunk by two-thirds, from 10% of GDP in 2007.
Slow progress in reforms to address industrial bottlenecks, a restrictive monetary policy and faltering demand from advanced nations have slowed India's economic growth to its lowest in a decade.
If most unemployment is cyclical, not structural, the Fed could theoretically help by stimulating demand with easier monetary policy.
While economic activity continues to lag, Bernanke and Draghi are using monetary tools to stimulate aggregate demand and aver catastrophic scenarios.
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The most telling data point, at least as it pertains specifically to monetary conditions, was loan demand, which remained stable or slightly higher.
Commodities have been rising on account of demand and loose monetary policy in the US, in particular, where near-zero capital costs have weakened the dollar and turned money managers onto hard assets like oil, gold, and agricultural commodities.
Following the 1985 Plaza Accord, the Bank of Japan launched an aggressive monetary policy easing to boost domestic demand.
Across the region, aggressive fiscal and monetary stimulus has helped revive domestic demand.
Any monetary easing presumably would boost industrial demand for metals, Melek said.
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Stronger demand will embolden the monetary hawks in the European Central Bank.
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Profits were offset by monetary declines in Venezuela and soft demand in North American markets, in addition to higher input costs for materials.
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Today, any objective economist will tell you that, despite all of the monetary and fiscal stimulus, aggregate demand and economic activity has been minimally impacted.
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Thanks to its monetary and fiscal stimulus, domestic demand has contributed an incredible 12 percentage points to GDP growth this year, while net exports subtracted almost four percentage points.
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In August, the Bank put interest rates on hold for a few months in the hope that monetary growth, exports and domestic demand would abate and that labour markets would slacken.
Fiscal and monetary stimulus, which jolted domestic demand, has caused China's current-account surplus to narrow dramatically, from 10.1% of GDP in 2007 to a projected 2.9% this year, according to Nomura, a financial services group, which sees it almost disappearing by 2013.
But, Volpon points out, internal demand was boosted by easy monetary and fiscal policy.
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Then, the abrogation of the Bretton Woods monetary system in 1971 created an artificial demand for gold as an inflation hedge.
That the declines were much smaller on average was because the effects of the appreciation were offset by demand-boosting fiscal, monetary and structural policies.
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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Recent declines in output in both Japan and Germany are largely due to inadequate demand caused by overly tight monetary policy, and not to supply-side constraints imposed by the failings of their models.
Many of these countries, such as China, have the fiscal and monetary capacity to take actions to spur domestic demand and to help support global growth.
However, the agency forecasts emerging market (EM) growth at a still fairly robust 4.9% in 2012, from 5.6% in 2011, bolstered by domestic demand growth and greater fiscal and monetary policy flexibility.
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Redick of Harvard, as well as studies done by economists in such hotbeds of Keynesian, demand side economics as the International Monetary Fund and the Organization of Economic Cooperation and Development (OECD).
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Monetary prices improved information about values and supply and demand, reducing risks for traders and vendors.
In these circumstances, a cheaper dollar will helpfully loosen overall monetary conditions, and also shift the composition of demand from consumer spending towards exports.
Second quarter GDP was a low 0.8% from the first quarter, but Mantega noted the slower growth was a result of government monetary and fiscal policies designed to slow overheated consumer demand.
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Oil prices are seen benefiting from loose monetary policies because higher growth translates into added oil demand and because ample money supply weakens the dollar and makes crude cheaper for traders using other currencies.
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