Monet Quotations

Monetary tightening, a strong currency and tamer U.S. demand should spell slower economic growth ahead, calming inflation fears.

Monetary policy will be based on seeking a balance between growth and stability.

Monetary policy should respond to energy shocks by remaining focused on price stability. I think it is too soon to declare that 'pass-through risk' is entirely behind us.

Monetary policy is the perfect instrument for these circumstances. The Fed can keep pushing as needed, but still can turn on a dime and pull back as soon as spending starts to rebound.

Monetary policy is most effective when it is coherent, consistent and predictable as possible, while at all times leaving full scope for flexibility and the use of judgment as conditions may require.

Monetary policy is a blunt tool which certainly affects the distribution of income and wealth, although whether the net effect is to increase or reduce inequality is not clear.

Monetary policy has to be somewhat accommodative, since a tightening in credit will likely cause liquidity difficulties in businesses that are suffering from overcapacity.

Monetary policy has never been partisan. Economists of both parties think that if you keep inflation low, you can keep employment high.

Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.

Monetary policy expectations were the driving forces on the FX markets in most of 2005 and while we expect structural problems to come back to haunt the dollar in 2006 we expect monetary policy expectations to lend support to the greenback early in the year.