Such monetary systems can succeed only as long as the central bank can credibly commit to keeping inflation under control.

In many of the troubled emerging economies, however, monetary policy has shouldered the burden of controlling inflation, managing the local currency s value, and supporting growth.

There is a real danger that so called fiscal dominance will undermine monetary policy and make it much harder to control inflation.

The first concerns the growing imbalances in the monetary and financial systems that expose the global economy to shocks that are beyond any national capacity to control.

Against the background of a shaky global recovery, concerns have grown considerably over a possible hard landing for the Chinese economy, caused by monetary tightening aimed at controlling inflation.

China s currency peg has also come in handy for Europe in its fight to keep inflation in check, while its monetary policy remains constrained by the sub prime crisis.

Rather than fiscal stimulation and control, the main tool of economic management nowadays is monetary policies conducted by independent central banks.

While monetary policy conducted by independent bureaucrats is imperfect, handing over effective control to congressmen with one eye on the next election would be infinitely worse.

The most important change that may keep the problem manageable is that China s monetary authorities have been putting the brake on the growth of these debts since late last year.

Its current account deficit remains large, and monetary policy has been confusing, as the objective of boosting competitiveness and growth clashes with the need to control inflation and avoid excessive credit expansion.

The concept of control would then have to be widened so as to encompass normative control.

Territorial control can take the form of military occupation, control without occupation or temporary control.

Right of control

Right of control

(a) Control

Contributions in cash

The financial overview is based on provisional 2004 amounts obtained from ADM FIN.

UNDG United Nations Development Group

Cash and term deposits

Cash advances

Companies are losing control.

Inflation is under control.

Territorial control

It is responsible for Swiss monetary policy and for issuing Swiss franc banknotes.

In fact, they have more control over the loss of control than ever before.

The Monetarist Mistake

The New Monetary Disorder

The amount shown in statement II for cash and term deposits represents the total of all cash balances (including funds held in non convertible currencies), net of any negative bank balances.

Selective Cash Assistance

Controlling Chinese Television

Controlling China s Currency

Inflation remains contained, but, more to the point, China s government has an arsenal of other weapons (from taxes on capital inflows and capital gains taxes to a variety of monetary instruments) at its disposal.

Bernanke s performance over the last two years has won high praise, and an extended political fight over control of US monetary policy was the last thing the world needed at what is still a very delicate moment for the global economy.

Leaners of Last Resort

China s Monetary Policy Choice

Harnessing the Remittance Boom

The West s Punch Bowl Monetary Policy

Apple s Cash Flow Problem

Jamal lost control of his emotions.

Loss of control over our assets!

They are totally getting out of control.

Control over the person of an applicant

Control over the infliction of the alleged violation

I don t think monetary policy, even unorthodox monetary policy, can do the job.

China s Monetary Policy Surprise