How can they balance the need to control domestic inflation with the potential risks of capital outflows or exchange rate volatility?

This heterogeneity primarily stems from the less favorable labor market responses of minority groups to contractionary monetary policy. These findings emphasize ... ... contractionary monetary policy have two effects on households' labor supply decisions. On the one hand, when monetary policy tightens, there's a ... Aug 15, 2024 ... Contractionary monetary policy reduces the CPI (seasonally adjusted price level), lowering industrial production and raising unemployment – all after a ... Notes: Impulse responses to a 1 percentage point contractionary monetary policy shock. The shaded areas display 90 percent confidence bands, computed using ... Jun 29, 2023 ... Notes: The chart shows the evolution of stance after two narratively identified contractionary monetary policy shock at time t intended to ... "The Monetary Policy Debate Since October 1979: Lessons for Theory and Practice." Federal Reserve Bank of St. Louis Review 87, no. 2, part 2 (March/April ... Monetary policy affects the amount of money in the economy and the costs of borrowing. Find the latest data on interest rates in the UK, US and Eurozone. Mar 1, 2014 ... Second, contractionary monetary policy shocks increase capital inflows into the bond market consistent with the prediction of the uncovered ... Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? Author & abstract; Download; 37 References; 74 Citations ... 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 ...