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Contractionary Monetary Policy: Real-World Examples

Worked IB Economics case study on contractionary monetary policy — what happened, how to deploy it in a 15-mark answer, and the evaluation points on both sides.

Bank of Japan building with an upward interest-rate symbol

Contractionary Monetary Policy

Bank of Japan Interest Rate Hikes in 2025

Japan2025

The BOJ raised interest rates twice in 2025 as wages and inflation strengthened, reducing monetary stimulus after years of very low rates.

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