WASHINGTON, DC American foreign policy stands on the brink of substantial belt tightening.

But when and how the Fed will begin tightening monetary policy remains unclear.

The mix of Chinese policy tightening, however, needs to shift much more decisively toward higher interest rates.

The timing of the inevitable policy shift back to tightening depends on overall inflation, particularly house prices.

The good news for Asia is that most of the region s monetary authorities are, in fact, tightening policy.

If Greece still had its own currency, the authorities could devalue it while tightening fiscal policy.

The only effective anti inflation strategy entails aggressive monetary tightening that takes policy rates into the restrictive zone.

Because of the lagged effects of monetary policy and the need to manage expectations, early tightening by the Fed would be appropriate.

The policy of tightening the noose and violating the safe areas pursued by the Serbs is still very much in evidence.

The noose is tightening.

A Cautionary History of US Monetary Tightening

The grip of the boa is tightening.

In the previous tightening cycle, which began in 2004, it took the Fed two years to normalize the policy rate.

This includes restoring ties with Europe, tightening the nuclear nonproliferation regime and possibly a restoration of China as the centerpiece of US policy in Asia.

But the recent popular use of the term awash with liquidity dates to 2005, a time when many central banks were tightening monetary policy.

Among the developing countries, many, especially in Asia, are tightening their monetary policy in response to their improvement in growth and increased fears of inflation.

Loosening monetary policy would increase significantly the risks stemming from local government debt and shadow banking, while tightening monetary policy would fully expose those risks, posing a serious systemic threat.

Will Fed Tightening Choke Emerging Markets?

Well, they're tightening up on security.

Above the plane, tightening the rigging.

But it is politically impossible for the Chinese government to alter its exchange rate policy under pressure without some concession from the US, and a tightening of US monetary policy could be sold as such a concession.

Widening external and domestic imbalances, higher oil prices, tightening monetary policy, less stimulatory fiscal policy, a moderation in productivity growth and the combination of low household savings and mounting household debt are all contributing to the slowdown.

The Bundesbank is also tightening credit at home.

But monetary tightening would weaken already slow growth.

As for fiscal policy, it is already in high gear and needs gradual tightening over several years, lest already troubling government debt levels deteriorate even faster.

But recipient economies are vulnerable to financial market sentiment and sudden capital flight as happened recently when investors anticipated monetary policy tightening in the United States.

Sound judgment is needed regarding the speed and timing of regulatory tightening.

Set each screw by tightening an additional 10 degrees

Monetary tightening was not the only major policy error of the 1930 s so was a retreat into protectionism, symbolized by the Smoot Hawley tariff increases at the beginning of that decade.

Indeed, if the shock is an increase in the dollar price of oil, an inflation target in theory dictates tightening monetary policy enough that the currency appreciates. But such a policy would mean that the adverse shock is reflected in a sharp fall in output.

But inflation remains high or rising, so more tightening is imposed.

At that time, both domestic investment and exports required immediate tightening.

UNTAC has been tightening security measures in the provinces most affected.

For example, many countries that were tightening their monetary policy when the first signs of turbulence emerged have either put interest rate hikes on hold, or, like Brazil, have already started to reduce rates.

Since then, Iran has responded to incremental tightening of international sanctions by building more centrifuges.

Meanwhile, given the fragility and interconnectedness of the global economy, tightening monetary policy in the US could have negative impacts abroad (with consequent blowback at home), especially given the instability in China and economic malaise in Europe.

And they disobeyed the messenger of their Lord , therefor did He grip them with a tightening grip .

And they disobeyed the messenger of their Lord , therefor did He grip them with a tightening grip .

To be sure, a country s domestic economic circumstances, and the tools available to policymakers, should guide policy. And, though monetary tightening may well be advisable in some economies, it might be inappropriate in others.

The tightening of restrictions by NADK on UNTAC liaison personnel stationed in Pailin has been a matter of concern.

With Gazprom having already doubled gas tariffs for Georgia, the energy noose is tightening.

Or high pitch versus low pitch plucks produced by tightening the cable different amounts.

It is also vital to support the Bosnians apos negotiating position by further tightening the enforcement of sanctions.

If central banks are tightening and long term rates aren t rising, one needs some explanation.

They defied their Lord 's messenger , so He seized them with an ever tightening grip .