What monetary policy cannot be expected to do effectively under the current circumstances, however, is to compensate for fiscal policy if it is too contractionary: “Fiscal policy should take ...

Central banks target activity indirectly by influencing the money supply through adjustments to interest rates, bank reserve ... These cyclical changes make fiscal policy automatically expansionary ...

Expansionary fiscal policies are meant to stimulate the economy during recessions and other tough times. Check out some ...

In turn, this generates a contractionary effect on ... (U.S.) instead of pro-cyclical fiscal policy (Argentina), already high interest rates, higher unemployment, lower productivity, high default ...

In normal times, in a speech a week before an interest rate decision, the governor of the Bank of Israel would talk about inflation and the moderating rate of inflation. This time, however, the ...

Economists have applauded the Government's tight monetary policy stance, saying that it has subdued inflation and anchored exchange rate stability.Tight monetary policy involves limiting the money ...

Across all countries, the average effect amounts to about 2 percent in 15 days after a contractionary monetary policy shock (i.e., an unanticipated increase of 1 percentage point in short-term ...