Goldman Sachs said in a recent note that China's gradual monetary loosening will drive a modest acceleration in premium growth in the second quarter.
Vast monetary loosening should cushion the recession and buy time.
"With some softening in the dollar, players are electing to take profits as the market has risen almost without a hitch since the Bank of Japan's monetary policy loosening on April 4, " said Yoshihiro Okumura, general manager Chibagin Asset Management.
There was also clearly a certain amount of safe-haven buying by those concerned with monetary policy in the United States and loosening of monetary policy by the European Central Bank, encouraging purchases of physical silver in bar or coin form.
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Only if the big euro members tighten fiscal policy together will the ECB respond by loosening monetary policy.
Japanese interest rates are already at zero, so loosening monetary policy is the sole measure at the Bank of Japan's disposal.
The Bank of Japan, now formally independent of the government, could also help by loosening monetary policy further (ie, by printing money) in order to oil the wheels of commerce and to seek to reverse the price deflation which is itself restraining consumption.
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In fact, the economy shrugged off the meltdown with the help of a loosening of monetary policy and recession was postponed until the early 1990s.
In order to stoke domestic demand for the bonds, the government announced a loosening of monetary policy in April, cutting the bank reserve requirement and interest rates.
For Spain and Italy, those rate cuts would come on top of a marked loosening of monetary policy in the past year-and-a-half, the full impact of which has still not been felt.
Some of the bulls listed the likelihood of further loosening of monetary policy by the European Central Bank down the road and potential for the Federal Open Market Committee to hint at more possible easing in the U.S. when policy-makers meet next week.
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Up until now he has relied on the loosening of monetary policy by the Bank of England - which he hopes the new Governor will take much further - and schemes to encourage the private sector to invest in building homes and the nation's infrastructure.
But if that's true, you might ask whether Sir Mervyn or his successor would really be in a position to stop a chancellor who decided to engage in a stimulus programme, funded by QE, any more than he could stop George Osborne loosening UK monetary policy slightly last week.
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.
During the next decade, the Fed returned to Keynesian discretionary monetary policy, trying to steer the real economy to long term growth by manipulating interest rates, loosening when the economy seemed to turn down, tightening when this seemed to go too far and inflation started to rise.
Speaking on Monday, he said he was also "sceptical" of alternative monetary policy targets to price stability, such as gross domestic product targeting, since any, even temporary, loosening of inflation expectations would "poison" central bank credibility.
It said the Bank of England's Monetary Policy Committee (MPC), which sets interest rates and authorises other monetary boosts, such as QE - which involves pumping money into the economy to boost growth - should look at loosening the purse-strings.
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