What are the ethical responsibilities of central bankers in implementing contractionary monetary policy, given its potential impact on employment and economic well-being?

Aug 15, 2024 ... Contractionary monetary policy reduces the CPI (seasonally adjusted price level), lowering industrial production and raising unemployment – all after a ... An expansionary policy increases the supply of money in an economy. On the other hand, a contractionary policy decreases the supply of a country's currency. Jul 2, 2020 ... A direct benefit of contractionary monetary policy is that it strengthens government budgets. For example, when the Fed's discount rate ... A contractionary MP shock decreases output and inflation rates even under the ELB. •. However, the effects of identified MP shocks on macroeconomic variables ... 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 ... Jan 16, 2015 ... Working Paper No. 521. By Benjamin Nelson, Gabor Pinter and Konstantinos Theodoridis ... To explain this 'waterbed' effect, we propose a standard ... Jun 26, 2024 ... In the United States, growth is expected to slow down and the continued contractionary monetary policy will have a dampening effect on ... Contractionary fiscal policy means cutting government spending and raising taxes to reduce aggregate demand. With higher taxes, consumer spending reduces ... 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 ... Apr 21, 2023 ... Specifically, we find that total household consumption begins to decline five days after a contractionary monetary policy shock. Consumption ...