What are the potential consequences for countries with significant foreign debt?

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 ... This is called contractionary fiscal policy. 9. During times of inflation, by selling government bonds and raising reserve requirements, the discount rate, and ... Mar 1, 2014 ... Second, contractionary monetary policy shocks increase capital inflows into the bond market consistent with the prediction of the uncovered ... Frequently asked questions. What is monetary policy? The aim of tight monetary policy is usually to reduce inflation. With higher interest rates there will be a slowdown in the rate of economic growth. Jun 12, 2024 ... ... monetary policy and the monetary-fiscal policy ... In particular, sluggish aggregate demand driven by contractionary monetary policy may penalise ... Jun 29, 2023 ... Notes: The chart shows the evolution of stance after two narratively identified contractionary monetary policy shock at time t intended to ... Mar 11, 2024 ... ... monetary policy work their way through the economy. Risks to ... contractionary fiscal stance in the euro area in 2025. This would be ... The Board is committed to do what is necessary to ensure that inflation in Australia returns to the 2 to 3 per cent target range over time. It is seeking to do ... 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 ...