Sentence examples for monetary autonomy from inspiring English sources

The lack of monetary autonomy thus means Spain has also little budgetary leeway.

The model shows that governments have to choose two of the following three policy aims: (1) domestic monetary autonomy (the ability to control the money supply and set interest rates and thus control growth); (2) exchange rate stability (the ability to reduce uncertainty through a fixed, pegged, or managed regime); and (3) capital mobility (allowing investment to move in and out of the country).

The euro interest rate set by the European Central Bank may be too low to keep a lid on inflation in booming economies such as Spain or Ireland and too high to stimulate growth in flagging ones such as Germany or Italy.This loss of national monetary autonomy need not matter too much, so long as fiscal policy can take the strain instead.

In the years following the Single European Act, the EU has liberalised its capital markets, and as the ECB has chosen monetary autonomy, the exchange-rate regime of the euro is flexible, or floating.

When a country dollarizes, it sacrificies monetary policy autonomy.

Given the lack of monetary policy autonomy it seems that additional tools are needed to first monitor international capital flows, and, second, to guarantee that they do not translate into banking and financial instability.

Given Greece's prior decision to embrace the euro as its currency, it no longer held monetary policy autonomy and could not intervene to depreciate a national currency to absorb the shock and boost competitiveness, as was the traditional solution to sudden capital flight.

The euro's arrival may have deprived the central bank of its monetary-policy autonomy, but it now has a much greater responsibility for liberalising and opening up to competition Italy's banking sector.

Mr Usman also announced detailed plans to diversify the economy, accelerate the privatisation programme and give the central bank autonomy in monetary policy.

"If you join the union, you automatically lose autonomy in monetary policy and a great deal of flexibility in fiscal policy," said David Walton, chief European economist at Goldman , Sachsin London.

Investors widely suggest that the central bank, which has no autonomy in monetary policy and needs approval from the highest echelons of power within the government on any rate action, will increase rates twice more in the first half of this year.