Asymmetric effects of monetary policy in the US: Positive vs. negative or big vs. small?

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Quarterly Review of the Federal Reserve Bank of St. Louis, 2004
http://hdl.handle.net/10230/478
To cite or link this document: http://hdl.handle.net/10230/478
dc.contributor.author Ravn, Morten O.
dc.contributor.author Solà, Martín
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 1997-10-01
dc.identifier.citation Quarterly Review of the Federal Reserve Bank of St. Louis, 2004
dc.identifier.uri http://hdl.handle.net/10230/478
dc.description.abstract This paper reconsiders the empirical evidence on the asymmetric output effects of monetary policy. Asymmetric effects is a common feature of many theoretical models, and there are many different versions of such asymmetries. We concentrate on the distinctions between positive and negative money-supply changes, big and small changes in money-supply, and possible combinations of the two asymmetries. Earlier research has found empirical evidence in favor of the former of these in US data. Using M1 as the monetary variable we find evidence in favor of neutrality of big shocks and non-neutrality of small shocks. The results may, however, be affected by structual instability of M1 demand. Thus, we substitute M1 with the federal funds rate. In these data we find that only small negative shocks affect real aggregate activity. The results are interpreted in terms of menu-cost models.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 247
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Asymmetric effects of monetary policy in the US: Positive vs. negative or big vs. small?
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:13:55Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword monetary policy
dc.subject.keyword asymmetric effects
dc.subject.keyword menu costs
dc.rights.accessRights info:eu-repo/semantics/openAccess


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