How can governments ensure that their spending and borrowing decisions are consistent with the central bank's efforts to control inflation and stabilize the economy?

Aug 27, 2019 ... Conversely, contractionary monetary policies (“tight money”) often lead to a temporary increase in short-term interest rates. But it is not ... The findings suggest that wealth inequality increases after a contractionary monetary policy shock, with the effects becoming more pronounced over time. The ... The goal of contractionary monetary policy is to decrease the rate of demand for goods and services, not to stop it. Aug 10, 2022 ... In this paper we analyse the role of fiscal policy and its debt maturity structure which is producing this "monetary contraction" through its ... An expansionary policy increases the supply of money in an economy. On the other hand, a contractionary policy decreases the supply of a country's currency. Contractionary monetary shocks raise unemployment more strongly than expansionary shocks lower it. Page 1 policies during the Great Recession after reduc- ing ... Jun 26, 2024 ... In the United States, growth is expected to slow down and the continued contractionary monetary policy will have a dampening effect on ... A contractionary MP shock decreases output and inflation rates even under the ELB. •. However, the effects of identified MP shocks on macroeconomic variables ... 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 ... Nov 16, 2023 ... We find that contractionary monetary policy is more pronounced and persistent when the reaction function of the central bank is augmented with ...