What are the risks associated with attempting to use monetary policy to target asset prices?

Our results are as follows. First, we find that firms' bank loan expectations react to monetary policy, with a contractionary shock leading to a downward. 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 ... Mar 26, 1999 ... By shifting toward more contractionary monetary policies, other gold standard countries could ensure that domestic interest rates would rise in ... Contractionary monetary shocks raise unemployment more strongly than expansionary shocks lower it. Page 1 policies during the Great Recession after reduc- ing ... This heterogeneity primarily stems from the less favorable labor market responses of minority groups to contractionary monetary policy. These findings emphasize ... Jan 13, 2025 ... Contractionary monetary policy has the opposite effect on GDP, employment, and inflation. The. Fed chooses whether to make monetary policy. Jul 2, 2020 ... A direct benefit of contractionary monetary policy is that it strengthens government budgets. For example, when the Fed's discount rate ... And what is the policy stance of the world as a whole? The tracker highlights significant global trends in monetary policy. For example, central banks around ... Jun 26, 2024 ... In the United States, growth is expected to slow down and the continued contractionary monetary policy will have a dampening effect on ...