What are the limitations of using interest rate policy to address supply-driven price increases?

Between 2009 and 2015, contractionary monetary policy gave non- state banks a strong incentive to take advantage of the lax regulatory environment of shadow ... "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 ... Contractionary monetary policy systematically increases inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary ... contractionary monetary policy exerts an important reallocation effect by cleansing unproductive firms and enhancing aggregate productivity. At the same ... Jan 13, 2025 ... Contractionary monetary policy has the opposite effect on GDP, employment, and inflation. The. Fed chooses whether to make monetary policy. 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 ... Mar 4, 2025 ... Contractionary fiscal policies are measures governments take to reduce their spending and increase taxes, leading to a decrease in economic ... The findings suggest that wealth inequality increases after a contractionary monetary policy shock, with the effects becoming more pronounced over time. The ... Our results are as follows. First, we find that firms' bank loan expectations react to monetary policy, with a contractionary shock leading to a downward. Mar 26, 1999 ... By shifting toward more contractionary monetary policies, other gold standard countries could ensure that domestic interest rates would rise in ...