Asymmetric Effects of Money on Inflation: Evidence from Korean Data

Rhee, Wooheon

doi:10.1080/10168739500000027

Cited by 3 publications

(2 citation statements)

References 7 publications

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“…Similar to the Keynesian interpretation are models with cost of menu strategy. The cost of menu approach relates the source of asymmetry in monetary policy to the fact that firms keep prices constant in response to a small shift in nominal demand to avoid menu cost (see Wooheon, 1995; Zakri & Malik, 2013). It is on this note that big monetary shocks have been widely proclaimed as likely to be neutral, but the same cannot be said of small monetary shocks, thereby constituting asymmetries in monetary policy.…”

Section: Theoretical Foundations Of Asymmetries In Monetary Policymentioning

confidence: 99%

Monetary Policy Shocks and Macroeconomic Fundamentals in South Africa

Adelakun

Yousfi

2020

Emerging Economies Cases Journal

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This South African case study controls for the fiscal side of the economy using government borrowing as a potential accelerator of asymmetry in a monetary function that follows Taylor’s rule. Through the linear and non-linear ARDL framework, we find significant asymmetry effects of monetary policy on output and inflation, respectively. We also find government borrowing as an important underlying source of asymmetries in the response of macroeconomic fundamentals to monetary policy shocks in South Africa. Thus, we recommend that monetary authorities consider not only the effectiveness or otherwise of monetary policy instruments to affect the target policy goals, but also the fact that not all the target variables react in a similar way to expansionary and contractionary monetary policy shocks.

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Section: Theoretical Foundations Of Asymmetries In Monetary Policymentioning

confidence: 99%

Monetary Policy Shocks and Macroeconomic Fundamentals in South Africa

Adelakun

Yousfi

2020

Emerging Economies Cases Journal

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“…Similar to the Keynesian interpretation are models with cost of menu strategy. The cost of menu approach relate the source of asymmetry in monetary policy to the fact that firms keep prices constant in response to a small shift in nominal demand so as to avoid menu cost (see Wooheon, 1995;Zakir and Malik, 2013). It is on this note that big monetary shocks has been widely proclaimed as likely to be neutral, but same cannot be said of small monetary shocks thereby constituting asymmetries in monetary policy.…”

Section: Theoretical Foundations Of Asymmetries In Monetary Policymentioning

confidence: 99%

Impact of Monetary Policy Shocks on Macroeconomic Fundamentals: The Role of Asymmetry and Uncertainty in Nigeria

Deekor¹

2019

ASSRJ

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That monetary policy is made in an environment of substantial uncertainty is only a commonplace knowledge. But for the peculiar vulnerability of monetary authorities to exogenous conditions in developing economies, we hypothesized for the role of uncertainty in the asymmetry effect of monetary policy. Essentially, we explore both money supply and interest rate process using linear and non-linear ARDL to show that political pressure such as variability in government borrowing has the potential to accelerate the asymmetry effect of monetary policy. We also observe the asymmetry effect of monetary policy to be sensitive to the choice of monetary policy indicator. These findings suggest that monetary authorities must consider not only the effectiveness or otherwise of monetary policy instruments to affect the target policy goals, but also the fact that not all the target variables react in a similar way to expansionary and contractionary monetary policy shocks.

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Holmes

2000

Empirica

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Asymmetric Effects of Money on Inflation: Evidence from Korean Data

Cited by 3 publications

References 7 publications

Monetary Policy Shocks and Macroeconomic Fundamentals in South Africa

Monetary Policy Shocks and Macroeconomic Fundamentals in South Africa

Impact of Monetary Policy Shocks on Macroeconomic Fundamentals: The Role of Asymmetry and Uncertainty in Nigeria

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