How do currency pegs or fixed exchange rate regimes influence the ability to implement contractionary monetary policy?

A contractionary policy is a monetary measure to reduce government spending or the rate of monetary expansion by a central bank. ... contractionary monetary policy have two effects on households' labor supply decisions. On the one hand, when monetary policy tightens, there's a ... Jun 7, 2023 ... Tightening driven by contractionary monetary policy shocks leads to a decline in the stock market, while tightening driven by positive ... Jun 17, 2020 ... If the BSP perceives the inflation forecast to exceed the target, then it implements contractionary monetary policy to bring down inflation to ... The findings suggest that wealth inequality increases after a contractionary monetary policy shock, with the effects becoming more pronounced over time. The ... Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? Author & abstract; Download; 37 References; 74 Citations ... Jan 19, 2023 ... Using a VAR model, Amarasekara (Citation2008) finds that contractionary monetary policy shock decreases output and inflation while causing the ... Aug 26, 2024 ... Contractionary monetary policy is a macroeconomic tool that a central bank uses to reduce inflation. The goal is to slow the pace of the economy ... At the same time, the unemployment rate is very low. In this case, the Fed might decide to use contractionary monetary policy to bring inflation back to the ... Jun 29, 2023 ... Notes: The chart shows the evolution of stance after two narratively identified contractionary monetary policy shock at time t intended to ...