This paper tests for the presence of asymmetric effects of monetary policy on output. The asymmetries that the authors examine are related to the size and sign of monetary policy shocks and are based on economic theory. Using M1 as the basis for measuring monetary policy shocks, they find...

Using a dynamic stochastic general equilibrium model with financial frictions, this paper evaluates the effects of a rule that incorporates not only the interest rate but also the legal reserve requirements as instruments of monetary policy. It is found that reserve requirements can be used to...

This paper estimates a sticky-price DSGE model with a financial accelerator to assess the importance of financial frictions in the amplification and propagation of the effects of transitory shocks. Structural parameters of two models, one with and one without a financial accelerator, are...