Monetary policy is contractionary. Despite $120 billion per month in ongoing quantitative easing "QE" and zero percent interest rates, monetary policy is still contractionary. How can this be true?

Monetary policy seeks to control the economy by manipulating the money supply and interest rates. Fiscal policy is designed to achieve the same end using targeted taxes and spending. The Achilles' ...

Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates in an economy. Monetary policy refers to the actions taken by a central bank or monetary ...

We incorporate incumbent innovation in a Keynesian growth framework to generate an endogenous distribution of market power across firms. Existing firms increase markups over time through successful ...

Central banks conduct monetary policy to achieve price stability, but decisions also have effects on labor-market outcomes. In this paper, we identify exogenous monetary shocks with the ‘interest rate ...

Contractionary monetary policy consists of actions taken by the Federal Reserve to curtail inflation by dampening economic growth. Learn more below. Policymakers in the central bank and federal ...