What is the importance of fiscal responsibility in supporting the goals of contractionary monetary policy?

"The Monetary Policy Debate Since October 1979: Lessons for Theory and Practice." Federal Reserve Bank of St. Louis Review 87, no. 2, part 2 (March/April ... Contractionary monetary policy surprises increase income inequality, and most of this effect is due to the response of labor income (income attributed to ... In conclusion, contractionary monetary policy causes interest rates to rise because it decreases the money supply, making loans more expensive and leading ... The goal of contractionary monetary policy is to decrease the rate of demand for goods and services, not to stop it. Fiscal policy that increases aggregate demand directly through an increase in government spending is typically called expansionary or “loose.” By contrast, ... A contractionary monetary policy will raise interest rates, discourage borrowing for investment and consumption spending, and cause the original demand curve ( ... This is called contractionary fiscal policy. 9. During times of inflation, by selling government bonds and raising reserve requirements, the discount rate, and ... Jan 16, 2015 ... Working Paper No. 521. By Benjamin Nelson, Gabor Pinter and Konstantinos Theodoridis ... To explain this 'waterbed' effect, we propose a standard ... Jun 7, 2023 ... Tightening driven by contractionary monetary policy shocks leads to a decline in the stock market, while tightening driven by positive ... Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? Author & abstract; Download; 37 References; 74 Citations ...