Asymmetric Effects of Positive and Negative Money-Supply Shocks

This paper examines whether positive and negative money-supply shocks have symmetric effects on output. The results are consistent with the hypothesis that positive money-supply shocks do not have an effect on output, while negative money-supply shocks do have an effect on output. This finding is in...

Full description

Saved in:
Bibliographic Details
Published in:The Quarterly journal of economics 1992-11, Vol.107 (4), p.1261-1282
Main Author: Cover, James Peery
Format: Article
Language:English
Subjects:
Aggregate demand
Coefficients
Economic growth rate
Economic models
Economic theory
Gross national product
Hypotheses
Monetary theory
Money supply
Paper money
Quarterly estimates
Shock tests
Standard deviation
Studies
Supply shocks
Time series
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper examines whether positive and negative money-supply shocks have symmetric effects on output. The results are consistent with the hypothesis that positive money-supply shocks do not have an effect on output, while negative money-supply shocks do have an effect on output. This finding is independent of whether or not expected money is assumed to affect output. The results reported in this paper imply that the Fed could increase the growth rate of real output by reducing the standard deviation of unexpected changes in the money supply.
ISSN:0033-5533
1531-4650
DOI:10.2307/2118388