Japan had an asset bubble that monetarists blamed on their lack of action to tighten the money market by increasing interest rates. Their economy tanked and th

Japan had an asset bubble that monetarists blamed on their lack of action to tighten the money market by increasing interest rates. Their economy tanked and they switched to ZIRP in the late 90s and have been there more or less ever since, with no runaway inflation or asset bubbles. So at best you could say that the impact of monetary policy on inflation and GDP is indeterminate, however it is more likely than not going to be inflationary because increasing interest rates increases net financial assets in the private sector by increasing transfer payments to rich people.