What is the role of scenario planning and stress testing in preparing for potential adverse global developments?

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 ... Mar 26, 1999 ... By shifting toward more contractionary monetary policies, other gold standard countries could ensure that domestic interest rates would rise in ... May 7, 2023 ... The government has two ways to dial back the problem: Contractionary fiscal policy and contractionary monetary policy. May 21, 2013 ... For example, in the standard New Keynesian model the nominal interest rate can move in either direction after a contractionary monetary policy ... The findings suggest that wealth inequality increases after a contractionary monetary policy shock, with the effects becoming more pronounced over time. The ... Oct 5, 2023 ... A contractionary monetary policy shock leads to a significant increase in labor supply: workers reduce the rate at which they quit jobs to non-employment. May 24, 2017 ... Summary. Using VAR models for the USA, we find that a contractionary monetary policy shock has a persistent negative impact on the level of ... 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. ... contractionary policy in the recovery that has followed. If matters continue that way, fiscal policy may lose its utility as a means of sparking economic growth ... A contractionary MP shock decreases output and inflation rates even under the ELB. •. However, the effects of identified MP shocks on macroeconomic variables ...