A recent FT Alphaville post by Ajay Rajadhyaksha, global chair of research at Barclays has this admission on how monetary policy works:

Central bankers don’t like admitting it, but a primary goal of rate hikes is to cause enough job losses to ensure that wage growth slows down.

Several Post-Keynesians have of course said this but here I quote Nicholas Kaldor who wrote in 1980 in the article Monetarism And UK Monetary Policy:

… This does not mean that a ‘monetarist’ economic policy such as that of the present government is futile. But its real effect depends on the shrinkage of effective demand brought about through high interest rates, an overvalued exchange rate and deflationary fiscal measures (mainly expenditure cuts), and the consequent diminution in the bargaining strength of labour due to unemployment. Control over the ‘money supply’, which has in any case been ineffective on the government’s own criteria, is no more than a convenient smoke-screen providing an ideological justification for such antisocial measures.