Question:

What are monetary policy shocks?

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what is meant by a monetary policy shock?

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  1. "monetary policy shock" is not a good use of word shock in economics.

    A shock is a suddenly event happened in the economy, could be in the monetary sphere, and monetary policy is the policy applied by governments to maintain stable the monetary sphere of economy and prevent shocks in the monetary side of economy....


  2. Actions by central banks that are a "surprise" and which cause significant immediate adjustments to short-term interest rates.  

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