In the short run, the failure of UIP results from the interaction of stochastic exchange market shocks with endogenous monetary policy reactions. In the long run, in contrast, exchange rate movements ...

First, as expansionary monetary policy can boost the economy as a whole, investments more sensitive to the business cycle will usually benefit and vice versa with contractionary policy.

Dhaka Chamber of Commerce & Industry (DCCI) expressed concern over Bangladesh Bank’s decision to maintain a contractionary monetary policy in H2 of FY25, keeping the policy rate at 10%. While aimed at ...

Is this, as alleged, because of excessive reliance on raising the interest rate as a policy response? More likely it is because of contractionary effects of devaluation. There are various possible ...

given all of the above, more likely the expansionary fiscal policy will end up being contractionary in terms ... could potentially be expanded to the monetary side—hopefully the increase in ...

The reforms will eventually benefit the economy in the medium and long run, it said in its ... The central bank said it intensified its contractionary monetary policy to ease persistent ...