A Quote by William Vickrey

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.

William Vickrey

Quote Topics

Capacity Capital Cost Costs Effect Enter Exert Expansion High Interest Interest Rate Interest Rates Introduction Likely Monetary Monetary Policy Moreover Perverse Policy Pressure Rates Reducing Side Supply Thus Well

Quote Author

William Vickrey
Canadian - Educator
June 21, 1914 - October 11, 1996

The supply-side effect of a restrictive monetary policy is likely to be perverse, in that high interest rates enter into costs and thus exert inflationary pressure.

William Vickrey

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.

Ben Bernanke

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.

Martin Zweig

The degree of monetary policy ease should be associated with the level of real interest rates, not nominal interest rates.

Athanasios Orphanides

Let's have honest interest rates. Let's let the free market set interest rates in that zone where supply of savings is matched up with demand for real borrowing for capital projects.

David Stockman

We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs.

Charlie Munger

Manipulating the bond market is so greatly reducing the cost of capital that so far companies have been able to maintain profit margins without raising prices. As a result, we've been exchanging capital cost for commodity costs but you can only do that for so long.

Porter Stansberry

Monetary policy transmission encompasses the whole continuum of interest rates; of course, the central bank only determines the overnight policy rate.

Urjit Patel

Obviously, consideration of costs is key, including opportunity costs. Of course capital isn't free. It's easy to figure out your cost of borrowing, but theorists went bonkers on the cost of equity capital. They say that if you're generating a 100% return on capital, then you shouldn't invest in something that generates an 80% return on capital. It's crazy.

Charlie Munger

By putting downward pressure on interest rates, the Fed is trying to make financial conditions more accommodative - supporting asset values and lower borrowing costs for households and businesses and thus encouraging the spending that spurs job creation and a stronger recovery.

Janet Yellen

Government should eschew suasion and directives to banks on interest rates that run counter to monetary policy actions.

Urjit Patel

A good monetary policy follows inflationary expectations and not historical numbers.

Adi Godrej

By keeping labor supply down, immigration policy tends to keep wages high. Let us underline this basic principle: Limitation of the supply of any grade of labor relative to all other productive factors can be expected to raise its wage rate; and increase in supply will, other things being equal, tend to depress wage rates.

Paul Samuelson

Asset-heavy businesses generally earn low rates of return - rates that often barely provide enough capital to fund the inflationary needs of the existing business, with nothing left over for real growth, for distribution to owners, or for acquisition of new businesses

Warren Buffett

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.

Toshihiko Fukui

I believe I have demonstrated that the voters are characteristically ill-informed when voting on reducing social costs. Furthermore, their primary concern is with wealth transferred to themselves, rather than with social cost efficiency. Logically, this would mean that democratic government would be inefficient in reducing social costs.

Gordon Tullock

A Quote by William Vickrey

Quote Topics

Quote Author

Related Quotes

Related Authors