Top 45 Monetary Policy Quotes

If the public understands the central bank’s views on the economy and monetary policy, then households and businesses will take those views into account in making their spending and investment plans; policy will be more effective as a result.

Many emerging countries are facing the same issue of overheating and inflation because they have been vigorously expanding fiscal and monetary policy to counter the 2008 shock.

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

There is always the potential for a central bank to engage in discretionary monetary policy and to break the one-to-one link between changes in foreign reserves and changes in the money supply.

It’s true that monetary policy was too lax for too long, and the government encouraged lending to people who were unlikely to repay their loans.

Corporate totalitarianism means total control by corporate interests. If they want a war, they get a war. If they want GMOs, they get GMOs. If they want fracking, they get fracking. If they want big banks to control our monetary policy, big banks control our monetary policy.

I will be the first to say that it is always difficult to get monetary policy just right. But the Fed’s analytical prowess is top-notch, and our forecasting record is second to none.

The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the U.S. dollar should be kept at a reasonable and stable level.

Our ability to predict how the federal funds rate will evolve over time is quite limited because monetary policy will need to respond to whatever disturbances may buffet the economy.

Well, I think as long as people are talking about stimulus, I think the Fed will be thinking about cutting rates because monetary policy is the better way to go because you can turn it on and turn it off.

Monetary policy itself cannot sensibly be directed at reducing imbalances.

When historical relationships are taken into account, it is difficult to ascribe the house price bubble either to monetary policy or to the broader macroeconomic environment.

Audit the Fed is a bill that would politicize monetary policy, would bring short-term political pressures to bear on the Fed. In terms of openness about our financial accounts, we are extensively audited.

There is no risk-free path for monetary policy.

The Federal Reserve’s monetary policy objective is to foster maximum employment and price stability. In this regard, a key challenge is to assess just how far the economy now stands from the attainment of its maximum employment goal.

Domestic inflation reflects domestic monetary policy.

In effect, there has been a significant shortfall in the overall amount of monetary policy stimulus since early 2009.

Monetary policy should remain data dependent, be well communicated, and ensure that inflation expectations remain anchored.

The success of monetary policy should be judged by the economy’s performance against our statutory mandates of price stability and maximum employment.

So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls.

In stabilizing the macroeconomic environment, we have focused on aligning fiscal with monetary policy and nudging the central bank toward the objective of more market-determined exchange rates.

Monetary policy will, as always, respond to the economy’s twists and turns so as to promote, as best as we can in an uncertain economic environment, the employment and inflation goals.

That means following a very restrictive fiscal and monetary policy which will squeeze the monopolies and cut their subsidies. On the micro level we will allow other economic agents, both domestic and foreign, to compete with them.

The Fed’s organization reflects a long-standing desire in American history to ensure that power over our nation’s monetary policy and financial system is not concentrated in a few hands, whether in Washington or in high finance or in any single group or constituency.

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

Ethereum may make monetary policy decisions like, ‘Let’s do 1% inflation to support the ongoing development of the Ethereum protocol.’ A token built on Ethereum might want to do the same.

It’s a challenge for monetary policy to communicate that our inflation objective is 2 percent.

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.

Europe unified its monetary policy through the euro before it unified politically, therefore sustaining member countries’ abilities to pursue the kind of independent fiscal policies that can strain a joint currency.

I think that sharing information about our economies, the way that the central banks do in Basel and other forums, is quite useful. But it’s sharing information. It’s not coordinating policy. It’s not coordinating a single monetary policy.

The Global Financial Crisis and Great Recession posed daunting new challenges for central banks around the world and spurred innovations in the design, implementation, and communication of monetary policy.

The phrase ‘perception is reality’ is overused generally. But perception can be reality in monetary policy. The bond market doesn’t act merely on what it sees. It acts on what it expects of the Fed or the government.

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.

I don’t think that the ECB should compensate for the lack of reforms in some countries… But it is clear that monetary policy can help countries and continents to rebound faster.

Monetary policy is one of the most difficult topics in economics. But also, I believe, a topic of absolutely crucial importance for our prosperity.

The role of monetary policy is to smooth out business cycles by promoting steady inflation and healthy labor markets, but modern central bankers have taken an activist turn.

When monetary policy destroys the currency, it always destroys the middle class.

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.

Monetary policy is like juggling six balls… it is not ‘interest rate up, interest rate down.’ There is the exchange rate, there are long term yields, there are short term yields, there is credit growth.

Funnily enough, the Federal Reserve produced comics about monetary policy, and there is a good comic book guide to microeconomics and macroeconomics out there. But it is not really appropriate for younger readers; it is really aimed at economics students.

Monetary policy causes booms and busts.

Monetary policy ultimately must be conducted in a pragmatic manner that relies not on any particular indicator or model but, instead, reflects an ongoing assessment of a wide range of information in the context of our ever-evolving understanding of the economy.

By the beginning of the 20th century, the debate about monetary policy and the nation’s financial system had been going on for over a century. Increasingly, the shortcomings of the existing system were causing too much harm to ignore.

The monetary policy instruments which Russia has at its disposal are pretty well developed.

Any debate among politicians about monetary policy is counterproductive.