How do different schools of economic thought view contractionary monetary policy?

Jan 10, 2017 ... They find that the redistributive effects of monetary policy are such that contractionary monetary policy shocks increase inequality. The ... 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 ... Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and ... 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 ... "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 ... Oct 12, 2022 ... Contractionary fiscal policy: In contractionary fiscal policy, the government taxes more than it spends—either by increasing tax rates, ... Nov 23, 2022 ... "Some households are already bumping up against financial constraints and that's where the banks and fiscal policy need to show concern," Orr ... Contractionary monetary policy is one of the two types of monetary policy and can be defined as actions taken by the central bank in order to close an ... Notes: Impulse responses to a 1 percentage point contractionary monetary policy shock. The shaded areas display 90 percent confidence bands, computed using ... Jun 12, 2024 ... ... monetary policy and the monetary-fiscal policy ... In particular, sluggish aggregate demand driven by contractionary monetary policy may penalise ...