What are some key theoretical models used to analyze the effects of monetary policy?

Apr 12, 2023 ... Also known as tight monetary policy, contractionary policy decreases a nation's money supply to curb rampant inflation and keep the economy in ... Contractionary monetary policy decreases the supply of money while expansionary monetary policy increases the supply of money in an economy. When GDP is high ... Jan 13, 2025 ... Contractionary monetary policy has the opposite effect on GDP, employment, and inflation. The. Fed chooses whether to make monetary policy. Notes: Impulse responses to a 1 percentage point contractionary monetary policy shock. The shaded areas display 90 percent confidence bands, computed using ... Dec 22, 2018 ... Expansionary monetary policy is simply a policy which expands (increases) the supply of money, whereas contractionary monetary policy contracts ... Mar 26, 1999 ... By shifting toward more contractionary monetary policies, other gold standard countries could ensure that domestic interest rates would rise in ... Jul 24, 2023 ... As a result, contractionary monetary policy increases the quality of deals taking place as fewer financially constrained firms engage in M&A. Monetary policy is often referred to as being either expansionary (stimulating economic activity and consequently employment and inflation) or contractionary ( ... 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 ... Jan 10, 2017 ... They find that the redistributive effects of monetary policy are such that contractionary monetary policy shocks increase inequality. The ...