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 ...

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' ...

Background Contractionary monetary policy has long run effects on inequality (Feldkircher & Kakamu, 2018). However, other forms of monetary policy do not have a clear effect on income inequality.

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 ...