monetary restraint

简明释义

货币紧缩

英英释义

例句

1.In response to rising prices, the government chose a strategy of monetary restraint to reduce spending.

为了应对物价上涨，政府选择了货币紧缩的策略以减少支出。

2.During periods of economic uncertainty, monetary restraint can help stabilize the financial system.

在经济不确定时期，货币紧缩可以帮助稳定金融系统。

3.Businesses often struggle with monetary restraint as it limits their access to credit.

企业通常会因货币紧缩而苦苦挣扎，因为这限制了它们获得信贷的机会。

4.The government implemented monetary restraint to combat inflation, which means they tightened the money supply.

政府实施了货币紧缩以对抗通货膨胀，这意味着他们收紧了货币供应。

5.The central bank's policy of monetary restraint led to higher interest rates for consumers.

中央银行的货币紧缩政策导致消费者的利率上升。

作文

In the realm of economics, the term monetary restraint refers to a policy approach where a central bank or monetary authority limits the growth of the money supply in order to control inflation and stabilize the economy. This strategy is often employed during periods of economic expansion when inflationary pressures begin to build up. By implementing monetary restraint (货币紧缩), the central bank aims to prevent the economy from overheating and maintain price stability.One of the primary tools used to achieve monetary restraint is the adjustment of interest rates. When a central bank raises interest rates, borrowing becomes more expensive, which can lead to a decrease in consumer spending and business investment. This reduction in demand can help to cool off an overheating economy and curb inflation. For instance, during the late 1970s and early 1980s, the U.S. Federal Reserve implemented aggressive monetary restraint measures by significantly increasing interest rates, which ultimately helped to bring down the high inflation rates that plagued the country at that time.Another important aspect of monetary restraint is the management of the money supply through open market operations. Central banks can sell government securities to absorb excess liquidity in the financial system, thereby tightening the money supply. This action is intended to discourage excessive lending and spending, which can contribute to inflation. By carefully monitoring the economy and adjusting these levers, central banks can effectively implement monetary restraint policies to promote long-term economic stability.However, while monetary restraint can be effective in controlling inflation, it also carries risks. If implemented too aggressively, it can lead to a slowdown in economic growth and potentially trigger a recession. For example, if businesses curtail investment due to high borrowing costs, it can result in lower job creation and wage stagnation. Therefore, central banks must strike a delicate balance between controlling inflation and supporting economic growth.Moreover, the effects of monetary restraint are not always immediate. It can take time for changes in interest rates and money supply to filter through the economy. As such, policymakers must be forward-looking and consider the potential lag in the impact of their decisions. This requires a deep understanding of economic indicators and trends to ensure that monetary restraint measures are both timely and appropriate.In conclusion, monetary restraint (货币紧缩) is a crucial tool for central banks aiming to control inflation and stabilize the economy. Through the manipulation of interest rates and the money supply, monetary authorities can influence economic activity and maintain price stability. However, the implementation of such policies must be approached with caution, as overly stringent measures can stifle growth and lead to unintended consequences. A balanced approach is essential for achieving sustainable economic health in the long run.