Considering a contractionary monetary policy


Assignment Task: Consider a contractionary monetary policy. Conduct a comprehensive analysis and provide the impacts on Prices, real interest rate and Y, Consumption, Investment in the short run and long run. Assume the very short run where the SRAS is horizontal. First analyze for short run, then extend into long run. Provide step by step explanation, clearly explaining why, if you indicate a shift or transition. Provide some examples of contractionary monetary policy from any PIC. You must provide evidence (look up the media statements or releases and explain what the policy was and why such a policy was implemented).

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Macroeconomics: Considering a contractionary monetary policy
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