What are the potential consequences for productivity growth and long-run economic development?

Jun 7, 2023 ... Tightening driven by contractionary monetary policy shocks leads to a decline in the stock market, while tightening driven by positive ... Following an unexpected contractionary monetary policy shock, (constrained) expanding sectors respond primarily by lowering prices, while (unconstrained) ... Contractionary monetary policy systematically increases inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary ... ... policy caused high capital banks to take more risk. Capital constrained banks were not significantly affected by expansionary monetary policy. Contractionary ... Apr 1, 2025 ... Contractionary monetary policy has the opposite effect on GDP, employment, and inflation. The Fed chooses whether to make monetary policy ... Jan 23, 2014 ... Central Bank of Solomon Islands maintains tight monetary policy in face of excess liquidity; IMF welcomes stance but tells authorities to ... Jun 12, 2024 ... ... monetary policy and the monetary-fiscal policy ... In particular, sluggish aggregate demand driven by contractionary monetary policy may penalise ... This heterogeneity primarily stems from the less favorable labor market responses of minority groups to contractionary monetary policy. These findings emphasize ... 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 ... Oct 10, 2022 ... Inflation and Quantitative Tightening - A theoretical assessment of contractionary monetary policy and real economic activity