Inflation and the asymmetric effects of money on output fluctuations

Rhee, Wooheon; Rich, Robert W.

doi:10.1016/0164-0704(95)80089-1

Cited by 77 publications

(41 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Ramsey and Rothman (1996) and Verbrugge (1998) identify asymmetries in inflation and attribute them to downward price rigidities. Cover (1992), Rhee and Rich (1995), Karras (1996) and Madsen and Yang (1998) provide more general evidence of asymmetries that corroborates the implications of price adjustment models where prices are primarily sticky in a downward direction.…”

Section: Introductionsupporting

confidence: 70%

Are international real interest rate linkages characterized by asymmetric adjustments?

Holmes

Maghrebi

2006

Journal of International Financial Markets, Institutions and Mo

View full text Add to dashboard Cite

Section: Introductionsupporting

confidence: 70%

Are international real interest rate linkages characterized by asymmetric adjustments?

Holmes

Maghrebi

2006

Journal of International Financial Markets, Institutions and Mo

View full text Add to dashboard Cite

“…While Rhee and Rich(1995)use empirical analysis to show that the statement of stickiness can't prove the monetary policy to have the nature of asymmetry, their research result shows that the asymmetry will change as time going on. The result of Ganley and Salmon(1997), Hayo and Uhlenbrock(1999) magnifies that the asymmetry exits in the different industries,and heavy industry has more sensitive reaction to interest rate.…”

Section: A the Asymmetry Research Of Monetary Policy In Foreignmentioning

confidence: 95%

Literature Review of Monetary Policy Transmission

Fei

2012

2012 Second International Conference on Business Computing and Global Informatization

View full text Add to dashboard Cite

Monetary policy is the main tool to realize macrocontrol, it plays a very important role in impacting macroeconomic. Starting from monetary transmission mechanism, this paper researches the monetary policy transmission channel and the asymmetry. At last, it studies several research methods. The result indicates that the monetary policy indeed exists asymmetry when transmitting.Actually compared with other channels, the credit channel plays a more important role. The aim of this paper is to provide a reference when government is implying monetary policy and making macro-control.

show abstract

“…Rhee and Rich (1995) estimate a similar model using quarterly US data over the period 1961Q21 990Q4. Karras (1996) has done a similar exercise for a number of OECD countries (see also Morgan, 1993;Garcia and Schaller, 1995).…”

Section: " Introductionmentioning

confidence: 98%

The Asymmetric Effects of Monetary Policy: Some Results from a Macroeconometric Model

Arden

Cook

Holly

et al. 2000

The Manchester School

View full text Add to dashboard Cite

This paper o¡ers evidence of the asymmetric e¡ect of monetary policy on economic activity. First, asymmetric adjustment is captured in three macroeconomic relationships for investment, the consumer price de£ator, inventories and house prices. These relationships are then embedded in a small macroeconometric model of the UK economy. Simulations on this model allow us to trace through the interactions of these asymmetries so that a monetary shockömeasured by a change in interest ratesöa¡ects output and in£ation in the short run in ways dependent both upon the sign of the shock and the initial state of the economy. A monetary easing has signi¢cantly larger e¡ects on in£ation when the economy is close to capacity compared with when it is in recession. These e¡ects are captured by intrinsic asymmetries in the model, due to the use of the logarithm of interest rates and the logarithm of unemployment in the wage equation, as well as the asymmetries coming from the non-linearities which we have introduced explicitly. " IntroductionEmpirical research into the linkages between money and output has always been sharply divided between structural form and reduced form approaches. Early structural models were heavily in£uenced by Keynesian macroeconomic theory and, on the whole, tended to produce results favourable to Keynesian ideas. That is, the e¡ects of money on real output were present but relatively modest compared with the e¡ects of changes in autonomous expenditures. The reduced form approach developed out of monetarist attempts to counter the Keynesian dominance of empirical research. Such methods have the advantage of being much easier and cheaper to compute and, from the monetarist point of view, the important

show abstract

Inflation and the asymmetric effects of money on output fluctuations

Cited by 77 publications

References 7 publications

Are international real interest rate linkages characterized by asymmetric adjustments?

Are international real interest rate linkages characterized by asymmetric adjustments?

Literature Review of Monetary Policy Transmission

The Asymmetric Effects of Monetary Policy: Some Results from a Macroeconometric Model

Contact Info

Product

Resources

About