The Effects of Monetary Policy on the Real Economy
This paper looks for evidence of asymmetric effects of monetary policy on the real economy of the United States, the United Kingdom and Japan. In order to do this, a “new Keynesian” model is used as a basis with the regressions performed in a VAR setting. The results indicate that there is no empirical support for asymmetric effects of monetary policy shocks on the real economy. In fact, there is