But this vigorous attempt to reduce interest rates is distorting capital allocation.

Lost wages will reduce consumption, causing additional job cuts, while factory closures will reduce investment, hitting employment in capital goods industries.

One key issue facing China is how to reduce the current and capital account surpluses in order to reduce foreign exchange holdings.

Cooperation with affiliate firms to reduce transaction costs in sourcing, capital acquisition, and contracts

Equity capital will increase relative to assets but, under current policies, it will increase because banks reduce their assets, not because they raise capital.

Indeed, investment banks like Goldman Sachs and Barclays Capital are already inventing new types of securities to reduce the capital cost of holding risky assets.

(e) To support efforts to reduce capital flight and measures to curb the illicit transfer of funds.

When some want to reduce their surpluses without a corresponding desire by others to reduce deficits, the result is a sudden stop in capital flows and financial crisis.

Over time, however, the interest rate premium is likely to be small, because higher capital requirements and contingent capital should significantly reduce the likelihood of ever reaching the triggers.

This was folly for their big banks today, more capital would reduce the probability of needing further government bailouts.

Combined with elevated capital requirements for banks, it would reduce the chance of another simultaneous failure of all credit channels.

This approach implies that more can be done to reduce systemic risk, beyond reforming how risk is measured and capital buffers determined.

Indeed, the government has emphasized that Brazil will be even more insulated as efforts to cut spending reduce dependence on external capital flows.

In normal times, deficits crowd out private investment (and perhaps crowd in private saving and or foreign capital), and hence reduce future growth.

If appreciation does not reduce the current account surplus and capital inflows, then the renminbi s exchange rate is bound to face further upward pressure.

Some fear that extending the workday will not produce more jobs because the resulting expansion of hours worked will reduce the capital labor ratio.

Such a cap would not eliminate current account deficits, but it would reduce deficits to the flow of private capital willing to finance them.

In the Basel III negotiations that concluded last year, the French and Germans strongly favored relatively low capital requirements. This was folly for their big banks today, more capital would reduce the probability of needing further government bailouts.

But China s 3.2 trillion problem will become a 20 trillion renminbi problem if China cannot reduce its current account surplus and fence off capital inflows.

Of course, even if the composition of international capital flows can be changed, there are still many good reasons to try to reduce global imbalances.

(c) Reduce barriers to long term, non debt creating capital flows, especially FDI, and the costs to migrants of sending their remittances through sanctioned institutional channels.

The authors conclude that, by reducing the share of short term foreign currency debt in a country s total liabilities, capital controls can reduce vulnerability to financial crises.

The Fund, too, began to reduce conditionality, and eventually it began to question the desirability of capital market liberalization, which previously had been central to its agenda.

This form of financing is often used by private equity investors to reduce the amount of equity capital required to finance a leveraged buyout or major expansion.

Moving from supply driven approaches to demand management, in order to reduce unnecessary consumption and pressures on government capital budgets, is another option that has proven successful.

Lending large sums before assessing root causes and determining appropriate policy responses can undermine the IFIs credibility and reduce the capital available to assist other countries in need.

The goal of the United Nations Capital Development Fund (UNCDF) is to help reduce poverty and achieve the Millennium Development Goals (MDGs) in the least developed countries (LDCs).

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital.

The third risk is that rising oil prices reduce investor confidence and increase risk aversion, leading to stock market corrections that have negative wealth effects on consumption and capital spending.

Since export goods are considerably more capital and knowledge intensive in their production than other goods, the structural change will even reduce the net demand for unskilled labour capital and talents that move away from the other sectors will not take all the unskilled workers with them.

However, when reduce actions are added to the action table it can happen that the same cell is filled with a reduce action and a shift action (a shift reduce conflict ) or with two different reduce actions (a reduce reduce conflict ).

The higher interest rate will reduce the level of business investment and residential construction until they can be financed with the smaller volume of national saving plus the reduced capital inflows.

If European banks had enough capital, a reduction in the value of Greek and other debt would reduce shareholder equity and disappoint investors, but it would not cause a banking crisis.

Mexico, for example, recently adopted ahead of schedule the changes in capital requirements for banks recommended by the Third Basel Accord (Basel III), in order to reduce leverage and increase stability.

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But, while such policies help to reduce unemployment, their impact is subject to human capital constraints, with many unemployed workers lacking the knowledge, experience, or confidence needed to launch a new venture.

But the eurozone s peripheral countries simply did not have a choice they had to reduce their deficits, because the foreign capital on which their economies were so dependent was no longer available.

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Reagan had four key economic goals when he assumed office in 1981 reduce inflation, reduce high personal tax rates, reduce the size of government, and reduce regulation of the private sector.

These measures reduce expenditure and increase taxes in order to reduce government deficits.

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But China s 3.2 trillion problem will become a 20 trillion renminbi problem if China cannot reduce its current account surplus and fence off capital inflows. There is no escape from the need for domestic structural adjustment.

The argument for this option is that long term secular factors are important drivers of capital inflows, as advanced economy investors discover that they are underweight in emerging market assets and reduce their portfolios home bias.

A majority (22) of these completely abolitionist countries reported that they had taken or were involved in initiatives to promote the abolition of capital punishment or to reduce its scope or the incidence of its application.