How are the results of stress tests used to inform policy decisions?

Jun 29, 2023 ... Notes: The chart shows the evolution of stance after two narratively identified contractionary monetary policy shock at time t intended to ... Expansionary and contractionary policies emphasize however differ and it is safe to say that they are indeed two ends of a spectrum. For instance, expansion ... Conditional on a contractionary monetary policy shock, the labor share of value added is expected to decrease in the basic New Keynesian model. By providing ... Apr 12, 2023 ... Also known as tight monetary policy, contractionary policy decreases a nation's money supply to curb rampant inflation and keep the economy in ... Nov 26, 2013 ... A higher world interest rate stemming from the contractionary U.S. monetary policy shock therefore may dampen the domestic expenditure in the ... contractionary monetary policy exerts an important reallocation effect by cleansing unproductive firms and enhancing aggregate productivity. At the same ... Jan 10, 2023 ... Specifically, we identify a contractionary monetary policy shock that coincides with a decrease in the supply of loans (MP Loan Supply) and ... Aug 17, 2022 ... “Contractionary monetary policy runs the risk of quietly worsening racial and gender gaps with or without a widespread recession.” Inflation on ... Monetary policy is often referred to as being either expansionary (stimulating economic activity and consequently employment and inflation) or contractionary ( ... Aug 15, 2024 ... Contractionary monetary policy reduces the CPI (seasonally adjusted price level), lowering industrial production and raising unemployment – all after a ...