What are the potential consequences of inconsistent or unpredictable monetary policy?

A contractionary monetary policy is a type of monetary policy that is intended to reduce the rate of monetary expansion to fight inflation. A rise in inflation ... Contractionary monetary shocks raise unemployment more strongly than expansionary shocks lower it. Page 1 policies during the Great Recession after reduc- ing ... Jun 7, 2023 ... Tightening driven by contractionary monetary policy shocks leads to a decline in the stock market, while tightening driven by positive ... Jan 23, 2014 ... Central Bank of Solomon Islands maintains tight monetary policy in face of excess liquidity; IMF welcomes stance but tells authorities to ... 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 ... Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, ... Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? Author & abstract; Download; 37 References; 74 Citations ... This heterogeneity primarily stems from the less favorable labor market responses of minority groups to contractionary monetary policy. These findings emphasize ... Expansionary fiscal policy occurs when the Congress acts to cut tax rates or increase government spending, shifting the aggregate demand curve to the right. policy on output is answered clearly: contractionary monetary policy leads to contractions in real GDP. H. Uhlig / Journal of Monetary Economics 52 (2005) 381– ...