What are the potential risks posed by shadow banking during periods of rising interest rates?

Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, ... A contractionary MP shock decreases output and inflation rates even under the ELB. •. However, the effects of identified MP shocks on macroeconomic variables ... An expansionary policy increases the supply of money in an economy. On the other hand, a contractionary policy decreases the supply of a country's currency. 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 ... Contractionary monetary policy during 2009–2015 caused shadow banking loans to rise rapidly, offsetting the expected decline of traditional bank loans and ... Similarly, a monetary tightening only reduces inflation and output when accompanied by contractionary fiscal policy. These results are robust to several ... Nov 16, 2023 ... We find that contractionary monetary policy is more pronounced and persistent when the reaction function of the central bank is augmented with ... Nov 17, 2022 ... ... contractionary monetary policy shocks increase U.S. income and consumption inequality. The contrasting effects are primarily due to the ... Jan 10, 2017 ... They find that the redistributive effects of monetary policy are such that contractionary monetary policy shocks increase inequality. The ... Monetary policy is often referred to as being either expansionary (stimulating economic activity and consequently employment and inflation) or contractionary ( ...