The government's supporters have christened the fiscal and monetary strategy "Abenomics".
Dealers are now waiting anxiously to see whether the new monetary strategy of the world's eighth largest economy can survive fresh speculative attacks and avert a potentially catastrophic crash that analysts fear could plunge the globe into recession.
The truth is that single-minded adherence to an inflation target may be flawed.It is ironic therefore that the ECB's "two-pillar" monetary strategy has been so criticised indeed partly blamed for the euro's weakness.
WASHINGTON — A lone dissenter on the Federal Reserve's policy-making committee warned Friday that the central bank's monetary strategy could backfire and touch off a new boom-and-bust cycle.
"Today's rise in interest rates makes sense both from a short-term perspective and in terms of a sustainable long-term monetary strategy," said Andrew Sentance, senior economic adviser at the professional services firm PwC.
Bank of England (@bankofengland) News Release – Monetary strategy and prospects – speech by Paul Tucker http://t.co/vwdr54KESG September 24 , 20132.15pm BST Another resignation in Germany... this time at the Pirate Party, where leader Bernd Schlömer has reportedly told party members that he won't run again.
And to argue that the euro was flawed by failing to unite politics and fiscal policy with monetary strategy, that German intransigence on debt has damaged the wider project and, above all, that Greece is being crushed by its rigid and ever-tightening financial straitjacket.
And the president of the European Central Bank, Jean-Claude Trichet, indicated at a news conference Thursday in Frankfurt that the Fed's move would not force the bank to change its monetary strategy, adding that the current rate at 1 percent was "appropriate".
Other brave talk of reforming subsidies and a big rural-jobs scheme came unburdened by detail.In this section The quick count and the long Stuffed Double games Going for growth Scrum-halves Capital crimes ReprintsOn the other hand, Mr Jaitley's remarks on rethinking the central bank's monetary strategy, taken by commentators to mean setting a strict inflation target, are to be welcomed.
However, the U.K. central bank's aggressive monetary strategy is a marked contrast to the European Central Bank.
