What are the challenges in coordinating monetary and fiscal policy to manage government debt?

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 ... Aug 15, 2024 ... Contractionary monetary policy reduces the CPI (seasonally adjusted price level), lowering industrial production and raising unemployment – all after a ... "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 ... ... policy caused high capital banks to take more risk. Capital constrained banks were not significantly affected by expansionary monetary policy. Contractionary ... Jan 10, 2017 ... They find that the redistributive effects of monetary policy are such that contractionary monetary policy shocks increase inequality. The ... ... monetary policy. According to our results, a contractionary monetary policy shock generates long-run adverse effects on the level of real wages. While the ... Jan 13, 2025 ... Contractionary monetary policy has the opposite effect on GDP, employment, and inflation. The. Fed chooses whether to make monetary policy. Following an unexpected contractionary monetary policy shock, (constrained) expanding sectors respond primarily by lowering prices, while (unconstrained) ... Mar 1, 2014 ... Second, contractionary monetary policy shocks increase capital inflows into the bond market consistent with the prediction of the uncovered ... Keywords: Monetary policy, collateral constraints, currency mismatches, carry trade, spillovers. Page 2. BIS Working Papers are written by members of the ...