Powerful companies are diluting monetary policy effectiveness – IMF


Governments should consider tightening competition policies to prevent market power from dampening the impact of monetary policy, new research argues.

The paper from the International Monetary Fund concludes larger and more powerful companies are making monetary policy “less potent” as a tool in advanced economies, which may in turn be hampering the worldwide economic recovery.

“Curbing corporate market power would not only support the recovery directly … but also indirectly by making monetary

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