A Quote by Timothy Geithner

Monetary policy itself cannot sensibly be directed at reducing imbalances. — © Timothy Geithner
Monetary policy itself cannot sensibly be directed at reducing imbalances.
Poland is one of the few countries that can afford to conduct a conventional monetary policy and that means we have to act against the buildup of imbalances in the economy.
If European monetary policy is run according to German interests, huge structural imbalances will accumulate. The Germans will then either have to pay to correct those imbalances or agree that the euro should not be run primarily according to German interests. If they are unwilling to do either of those things, the euro can't survive.
The major economic policy challenges facing the nation today - pick your favorites among the usual suspects of low public and household savings, concerns about educational quality and achievement, high and rising income inequality, the large imbalances between our social insurance commitments and resources - are not about monetary policy.
Of course I welcome all the normalization of monetary policy. I think monetary policy should be normal.
We need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policy makers cannot wait until they have achieved their objectives to begin adjusting policy.
The supply-side effect of a restrictive monetary policy, moreover, is likely to be perverse. High interest rates enter into costs and thus exert inflationary pressure, as well as inhibiting the expansion of capacity or the introduction of cost -reducing capital improvements.
Monetary policy should never have been expected to shift economies to a sustainably higher growth trajectory by itself.
Inflation is certainly low and stable and, measured in unemployment and labour-market slack, the economy has made a lot of progress. The pace of growth is disappointingly slow, mostly because productivity growth has been very slow, which is not really something amenable to monetary policy. It comes from changes in technology, changes in worker skills and a variety of other things, but not monetary policy, in particular.
I've always believed in expansionary monetary policy and if necessary fiscal policy when the economy is depressed.
Fiscal policy, monetary policy, they need to work together to try and raise the level of growth.
Beyond monetary policy, fiscal policy has traditionally played an important role in dealing with severe economic downturns.
Monetary conditions exert an enormous influence on stock prices. Indeed, the monetary climate - primarily the trend in interest rates and Federal Reserve policy - is the dominant factor in determining the stock market's major direction.
Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.
Monetary policy cannot do much about long-run growth, all we can try to do is to try to smooth out periods where the economy is depressed because of lack of demand
Monetary policy cannot do much about long-run growth, all we can try to do is to try to smooth out periods where the economy is depressed because of lack of demand.
However, in spite of the general perception that monetary policy should be conducted so as to avert deflation, a central bank cannot lower interest rates below the zero lower bound.
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