What are the potential benefits and risks of aligning domestic monetary policy with that of major global central banks?

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 ... Feb 22, 2019 ... ... contractionary. Developments at the time of the December FOMC meeting, including volatility in financial markets and increased concerns ... The findings suggest that wealth inequality increases after a contractionary monetary policy shock, with the effects becoming more pronounced over time. The ... Jan 10, 2017 ... They find that the redistributive effects of monetary policy are such that contractionary monetary policy shocks increase inequality. The ... Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and ... Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, ... In conclusion, contractionary monetary policy causes interest rates to rise because it decreases the money supply, making loans more expensive and leading ... Following an unexpected contractionary monetary policy shock, (constrained) expanding sectors respond primarily by lowering prices, while (unconstrained) ... 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 ...