Briefing

Are the Effects of Monetary Policy Asymmetric?


Abstract: The Federal Reserve uses monetary policy to stimulate the economy when unemployment is high and to rein in inflationary pressures when the economy is overheating. However, evidence suggests that these policy stances have unequal effects. Contractionary monetary shocks raise unemployment more strongly than expansionary shocks lower it.

Keywords: monetary policy; monetary shocks;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2017

Issue: March