We study the effects of monetary policy shocks on the growth rates of hiring, employment and earnings of new hires across firms of different sizes. We find that contractionary and expansionary monetary policy shocks have different effects on hiring and employment growth for small and large...

We study the time varying effects of monetary policy on stock returns in order to capture changes over time on this transmission channel. We find that a one-percentage point surprise increase on the federal funds rate decreases the one-day stock return by 1.33% during the period 1989 to 2000 and...

We study the effect of different monetary policy rules on stock and bond risk usinga segmented financial market model. The optimal monetary policy rule in our modelis risk-sharing and countercyclical after shocks in the financial markets. Under thatpolicy, equity is not risky, and its return is...