These policies of overregulation and cheap dollar monetary expansion were the opposite of Reaganomics.
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The longer the Fed pursues monetary expansion, the greater the risk associated with the accumulation of these bonds.
Since late 2008 and early 2009, monetary expansion has been moderate, especially given the slack created by the recession.
Goldman Sachs and Morgan Stanley predict that unless the Fed continues this monetary expansion, credit markets will pull back.
Successive Irish governments sought to offset the cut in living standards imposed by higher oil prices through fiscal and monetary expansion.
We are afraid of excessive debt, taxes, spending, monetary expansion, and inflation.
But the relationship between gold and monetary expansion is not that simple.
Japanese Prime Minister Shinzo Abe has appointed Haruhiko Kuroda as the next chief of the Bank of Japan to execute his policy of rapid monetary expansion.
One, the creation of new bitcoin is capped at 21 million with eight current decimal places so it grows through adoption and usage rather than monetary expansion.
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Mr. Abe has made it clear that Japan will pursue an aggressive policy of monetary expansion regardless of the monetary and exchange rate policies pursued in other countries.
Monetary expansion plus targeted programs to help reduce payments on mortgages are important ways to help soften the blow of a downward spiral in housing, and should help boost employment.
That so long as a state of general unemployment prevails, in the sense that unused resources of all kinds exist, monetary expansion can be only beneficial, few people will deny.
And, given that in recent years most big countries have seen a large monetary expansion, central banks will find it hard to work out quite how accommodative they should be.
QE1 added greatly to bank reserves, which bloated the traditional measure of the monetary base, but most of those bank reserves have not yet led to rapid monetary expansion that would be inflationary.
Could the Fed increase NGDP via monetary expansion?
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The second and no doubt leading contributor to the gold bubble has been the world financial crisis of 2008-2009 and the subsequent worldwide central bank policy of monetary expansion to fight financial asset price deflation.
Against that, optimists such as Paul Sheard, an economist at Lehman Brothers, believe that the new team might produce further monetary expansion, plus support for easier fiscal policy should the government choose to pursue it.
What is driving the monetary expansion then?
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When the Fed reduced the discount rate in September 2007 and left the Federal Funds rate unchanged, it was deliberately increasing the likelihood that banks would shift their borrowing to the Fed and trigger reserve and monetary expansion.
But I also voiced to President Obama Brazil's concern regarding the monetary expansion policies that ultimately mean that countries that have a surplus be able to strike a balance in those economic monetary expansion policies through fiscal policies that are ultimately based on expanding investments.
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The monetary expansion following an open-market operation involves adjustments by banks and the public. (To find out more, see Formulating Monetary Policy.) The bank in which the original check from the Fed is deposited now has a reserve ratio that may be too high.
When the Federal Reserve encourages monetary inflation via credit expansion, banks artificially lower interest rates.
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The expansion of bank reserves normally would have prompted additional bank lending and investing and thus expansion of monetary deposits.
The Fed will therefore accelerate its rate of balance sheet expansion, easing monetary conditions further.
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Holmes said he expects the expansion of the monetary base to continue, thereby supporting gold in the longer term.
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Some fear that such a rapid expansion of the monetary base will stoke inflation, which is still above 5% in America and Britain and 3.6% in the euro area.
The sharp expansion of the monetary aggregates since the beginning of September was needed to offset the dramatic decline in velocity and the hoarding of reserves by the banking system.
However, expansion of the monetary base does not necessarily lead to growth in broad money, which measures the supply of credit to businesses and consumers and which ultimately drives inflation.
But given the size of those reserves, and the banks overwhelming need for income, it might not take much in the way of interest rate spread expansion to get some monetary inflation of the double digit variety from these banks.
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