{"id":48308,"date":"2023-11-20T15:36:35","date_gmt":"2023-11-20T14:36:35","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/on-current-monetary-tightening-and-inflation\/"},"modified":"2024-04-20T14:20:04","modified_gmt":"2024-04-20T12:20:04","slug":"on-current-monetary-tightening-and-inflation","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/48308\/","title":{"rendered":"On (Current) Monetary Tightening and Inflation"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-48308","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"In response to rising inflation, monetary policy in many countries around the world has recently been tightened, often sharply. This Research Brief shows that central banks have reacted with remarkable similarity, and that, contrary to what current policy rates might suggest, tightening in the USA and the euro area has so far been of roughly the same magnitude. It is also shown that the disinflationary effects of monetary tightening are not yet clearly evident. This is true both for the world's major currencies as well as for European currencies. The report then draws on new empirical evidence which shows that the ECB's interest rate policy from 1999 to 2019 had the desired effect on inflation, but that this effect unfolded only gradually. Thus, the price-dampening effects of the current tightening cycle have yet to materialise. The more monetary policy is tightened now, the more disinflation will be amplified as non-monetary price shocks unwind. It therefore seems appropriate to wait for the effects of the monetary policy measures taken so far before tightening further.","onlinedate":"2023-02-07 12:00:00","lang":"English","publication_series":"","publication_date":"20230201","publication_date_year":"","publication_date_full":false,"publication_num_pages":"12","keywords":"[]","jelcodes":"[]","related_publications":"[\"92575fea-b323-46c2-9ffe-d69c2f4d75e3\"]","pdf":255532,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"1","journal":"WIFO Research Briefs","publisher":"","invisible":false,"external":false,"embargo_date":"2023-02-07 12:00:00","types":[44390],"research_groups":[3500],"collaboration":"","persons":[3865],"persons_data":"[{\"personId\":3865,\"personName\":\"Stefan Schiman-Vukan\",\"organisationNames\":[]}]","clients":[10660],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Schiman-Vukan, S.<\\\/span> (2023). <span>On (Current) Monetary Tightening and Inflation<\\\/span>. <span><em>WIFO Research Briefs<\\\/em><\\\/span>, (1).<\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Schiman-Vukan S<\\\/span>. <span class=\\\"title\\\"><span>On (Current) Monetary Tightening and Inflation<\\\/span><\\\/span>. <span>WIFO Research Briefs<\\\/span>. 2023 Feb 7;(1).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{fa7aa9fa0ecc4853ac39e9371ab66075,<\\\/div><div>  title    = \\\"On (Current) Monetary Tightening and Inflation\\\",<\\\/div><div>  abstract = \\\"In response to rising inflation, monetary policy in many countries around the world has recently been tightened, often sharply. This Research Brief shows that central banks have reacted with remarkable similarity, and that, contrary to what current policy rates might suggest, tightening in the USA and the euro area has so far been of roughly the same magnitude. It is also shown that the disinflationary effects of monetary tightening are not yet clearly evident. This is true both for the world's major currencies as well as for European currencies. The report then draws on new empirical evidence which shows that the ECB's interest rate policy from 1999 to 2019 had the desired effect on inflation, but that this effect unfolded only gradually. Thus, the price-dampening effects of the current tightening cycle have yet to materialise. The more monetary policy is tightened now, the more disinflation will be amplified as non-monetary price shocks unwind. It therefore seems appropriate to wait for the effects of the monetary policy measures taken so far before tightening further.\\\",<\\\/div><div>  author   = \\\"Stefan Schiman-Vukan\\\",<\\\/div><div>  note     = \\\"On (Current) Monetary Tightening and Inflation\\\",<\\\/div><div>  year     = \\\"2023\\\",<\\\/div><div>  month    = feb,<\\\/div><div>  day      = \\\"7\\\",<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Research Briefs\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - On (Current) Monetary Tightening and Inflation<\\\/p><p>AU  - Schiman-Vukan, Stefan<\\\/p><p>N1  - On (Current) Monetary Tightening and Inflation<\\\/p><p>PY  - 2023\\\/2\\\/7<\\\/p><p>Y1  - 2023\\\/2\\\/7<\\\/p><p>N2  - In response to rising inflation, monetary policy in many countries around the world has recently been tightened, often sharply. This Research Brief shows that central banks have reacted with remarkable similarity, and that, contrary to what current policy rates might suggest, tightening in the USA and the euro area has so far been of roughly the same magnitude. It is also shown that the disinflationary effects of monetary tightening are not yet clearly evident. This is true both for the world's major currencies as well as for European currencies. The report then draws on new empirical evidence which shows that the ECB's interest rate policy from 1999 to 2019 had the desired effect on inflation, but that this effect unfolded only gradually. Thus, the price-dampening effects of the current tightening cycle have yet to materialise. The more monetary policy is tightened now, the more disinflation will be amplified as non-monetary price shocks unwind. It therefore seems appropriate to wait for the effects of the monetary policy measures taken so far before tightening further.<\\\/p><p>AB  - In response to rising inflation, monetary policy in many countries around the world has recently been tightened, often sharply. This Research Brief shows that central banks have reacted with remarkable similarity, and that, contrary to what current policy rates might suggest, tightening in the USA and the euro area has so far been of roughly the same magnitude. It is also shown that the disinflationary effects of monetary tightening are not yet clearly evident. This is true both for the world's major currencies as well as for European currencies. The report then draws on new empirical evidence which shows that the ECB's interest rate policy from 1999 to 2019 had the desired effect on inflation, but that this effect unfolded only gradually. Thus, the price-dampening effects of the current tightening cycle have yet to materialise. The more monetary policy is tightened now, the more disinflation will be amplified as non-monetary price shocks unwind. It therefore seems appropriate to wait for the effects of the monetary policy measures taken so far before tightening further.<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Research Briefs<\\\/p><p>JF  - WIFO Research Briefs<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[\"Czaloun Astrid\"]","scientific_review":"[\"Mooslechner Peter\",\"Nowotny Ewald\"]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>On (Current) Monetary Tightening and Inflation - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/48308\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"On (Current) Monetary Tightening and Inflation\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/48308\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-20T12:20:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/48308\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/48308\\\/\",\"name\":\"On (Current) Monetary Tightening and Inflation - 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