What are the key features of central bank independence, and why is it considered important?

Similarly, a monetary tightening only reduces inflation and output when accompanied by contractionary fiscal policy. These results are robust to several ... Jun 17, 2020 ... If the BSP perceives the inflation forecast to exceed the target, then it implements contractionary monetary policy to bring down inflation to ... Contractionary monetary policy is one of the two types of monetary policy and can be defined as actions taken by the central bank in order to close an ... Frequently asked questions. What is monetary policy? Following an unexpected contractionary monetary policy shock, (constrained) expanding sectors respond primarily by lowering prices, while (unconstrained) ... Oct 25, 2018 ... Because Italy's debt is very high—over 130 percent of GDP—the proposed budget violates EU fiscal rules. The European Commission has announced ... 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 ... Contractionary monetary policy surprises increase income inequality, and most of this effect is due to the response of labor income (income attributed to ... Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and ... Jan 10, 2023 ... Specifically, we identify a contractionary monetary policy shock that coincides with a decrease in the supply of loans (MP Loan Supply) and ...