What are the potential advantages and disadvantages of these alternative frameworks?

Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and ... At the same time, the unemployment rate is very low. In this case, the Fed might decide to use contractionary monetary policy to bring inflation back to the ... 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 ... Expansionary fiscal policy occurs when the Congress acts to cut tax rates or increase government spending, shifting the aggregate demand curve to the right. Jan 19, 2023 ... Using a VAR model, Amarasekara (Citation2008) finds that contractionary monetary policy shock decreases output and inflation while causing the ... Nov 17, 2022 ... ... contractionary monetary policy shocks increase U.S. income and consumption inequality. The contrasting effects are primarily due to the ... Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? Author & abstract; Download; 37 References; 74 Citations ... Aug 27, 2024 ... Contractionary Monetary Policy: A policy used to decrease the money supply and increase interest rates to reduce inflation. Deflationary Gap: 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 ... Between 2009 and 2015, contractionary monetary policy gave non- state banks a strong incentive to take advantage of the lax regulatory environment of shadow ...