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Are The Effects Of Monetary Policy Asymmetric?

Sunday, March 12, 2017 5:33
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from the Richmond Fed

– this post authored by Regis Barnichon, Christian Matthes and Tim Sablik

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.’

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Source: http://econintersect.com/pages/contributors/contributor.php?post=201703120631

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