This paper considers a possible explanation for the asymmetric effects of money supply shocks. Based on a sticky price theory, I derive the following two predictions: first, the relationship between trend inflation and the degree of asymmetry is not simply monotonic, instead, increases in inflation beyond some level can actually reduce the degree of asymmetry. Secondly, the degree of asymmetry is high in countries where the standard deviation of nominal GDP growth is high. I examine prewar and postwar data for OECD countries and find that the cross-country evidence supports both of these predictions.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Volume (Year): 33 (2001) Issue (Month): 1 (February) Pages: 65-89 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)