What are the challenges for small open economies in implementing independent monetary policy in a globalized world?

Dec 22, 2018 ... Expansionary monetary policy is simply a policy which expands (increases) the supply of money, whereas contractionary monetary policy contracts ... Contractionary monetary policy is a type of economic strategy used by central banks to decrease the money supply and increase interest rates in order to combat ... Contractionary monetary policy surprises increase income inequality, and most of this effect is due to the response of labor income (income attributed to ... Nov 17, 2022 ... ... contractionary monetary policy shocks increase U.S. income and consumption inequality. The contrasting effects are primarily due to the ... ... policy. Impulse response of unemployment rates for high and low-skill workers show low-skill workers bear a greater burden of contractionary monetary policy ... This heterogeneity primarily stems from the less favorable labor market responses of minority groups to contractionary monetary policy. These findings emphasize ... Nov 27, 2023 ... this year at 2.7% of GDP, so European fiscal policy is not offsetting the contractionary impacts of fiscal policy. Second, the euro area is ... Aug 10, 2022 ... In this paper we analyse the role of fiscal policy and its debt maturity structure which is producing this "monetary contraction" through its ... Aug 17, 2020 ... ... policy instrument. When the spread is used as a policy instrument, I find that contractionary monetary policy has a significant negative ... 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 ...