Atiq-ur-Rehman - In: Journal of Central Banking Theory and Practice 3 (2014) 1, pp. 43-58
Monetary policy tools, including money supply and interest rate, are the most popular instruments to control inflation … interest rate, will reduce inflation by reducing aggregate demand in an economy. However, monetary policy could be … reducing aggregate supply in the economy. If tight monetary policy is used to reduce this cost push inflation, the cost side …