Template-Type: ReDIF-Paper 1.0
Author-Name: Paolo Cavallino
Author-X-Name-First: Paolo
Author-X-Name-Last: Cavallino
Author-Name: Giulio Cornelli
Author-X-Name-First: Giulio
Author-X-Name-Last: Cornelli
Author-Name: Peter Hördahl
Author-X-Name-First: Peter
Author-X-Name-Last: Hördahl
Author-Name: Egon Zakrajsek
Author-X-Name-First: Egon
Author-X-Name-Last: Zakrajsek
Title: "Front-loading" monetary tightening: pros and cons
Abstract: In response to the surge in inflation globally, central banks have engaged in the most synchronised and rapid monetary tightening in 50 years.
Parsing the evidence from 11 advanced economies since 1970 indicates that "front-loading" of interest rate hikes is successful in countering inflation, even in the face of large and persistent inflationary shocks.
Still, front-loaded monetary policy tightening may carry risks to financial stability, especially in an environment of high private and public debt levels or potential fragility in market liquidity.
Length: 9 pages
Creation-Date: 2022-12-09
File-URL: https://www.bis.org/publ/bisbull63.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull63.htm
File-Format: text/html
Number: 63
Handle: RePEc:bis:bisblt:63