How might increased uncertainty and fragmentation of the global economy affect inflation dynamics and the effectiveness of central bank actions?

Aug 31, 2017 ... We find that a contractionary monetary policy shock has a persistent negative impact on the level of commercial bank assets, but increases the assets of shadow ... May 21, 2013 ... For example, in the standard New Keynesian model the nominal interest rate can move in either direction after a contractionary monetary policy ... 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 ... Contractionary monetary policy decreases the supply of money while expansionary monetary policy increases the supply of money in an economy. When GDP is high ... The Board is committed to do what is necessary to ensure that inflation in Australia returns to the 2 to 3 per cent target range over time. It is seeking to do ... Keywords: Monetary policy, collateral constraints, currency mismatches, carry trade, spillovers. Page 2. BIS Working Papers are written by members of the ... So, if the government takes expansionary fiscal policy action (shifting AD right) while the Federal Reserve engages in contractionary monetary policy (shifting ... Our results are as follows. First, we find that firms' bank loan expectations react to monetary policy, with a contractionary shock leading to a downward. Similarly, a monetary tightening only reduces inflation and output when accompanied by contractionary fiscal policy. These results are robust to several ... A contractionary MP shock decreases output and inflation rates even under the ELB. •. However, the effects of identified MP shocks on macroeconomic variables ...