- Some central banks are currently debating whether to tighten monetary policy to fight inflationary pressures, after having eased decisively in response to the COVID-19 shock.
- New IMF staff research has found ever larger and more powerful companies are making monetary policy a less potent tool for managing the economy in advanced economies, all else equal.
- Our study finds that firms with greater market power respond less to monetary policy actions, possibly because of their bigger profits.
For further details see:
Taming Market Power Could (Also) Help Monetary Policy