How does behavioral economics contribute to our understanding of the effects of contractionary monetary policy?

Jan 23, 2014 ... Central Bank of Solomon Islands maintains tight monetary policy in face of excess liquidity; IMF welcomes stance but tells authorities to ... The goal of contractionary monetary policy is to decrease the rate of demand for goods and services, not to stop it. 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 ... A contractionary monetary policy is a type of monetary policy that is intended to reduce the rate of monetary expansion to fight inflation. A rise in inflation ... Between 2009 and 2015, contractionary monetary policy gave non- state banks a strong incentive to take advantage of the lax regulatory environment of shadow ... Jan 10, 2017 ... They find that the redistributive effects of monetary policy are such that contractionary monetary policy shocks increase inequality. The ... Similarly, a monetary tightening only reduces inflation and output when accompanied by contractionary fiscal policy. These results are robust to several ... May 24, 2017 ... Summary. Using VAR models for the USA, we find that a contractionary monetary policy shock has a persistent negative impact on the level of ... In conclusion, contractionary monetary policy causes interest rates to rise because it decreases the money supply, making loans more expensive and leading ... 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 ...