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On the relevance of distinctions between anticipated, unanticipated expansionary, and unanticipated contractionary monetary policy

  • Joonsuk Chu
  • , Ronald A. Ratti

    Research output: Contribution to journalArticlepeer-review

    Abstract

    It has been found that distinctions among positive innovations, negative innovations, and anticipated monetary policy change are relevant for explaining movement in real output. An asymmetry in the effects of anticipated expansionary and anticipated contractionary monetary policy on output also was found to be statistically significant, and the null hypothesis of no asymmetry in stimulative/contractionary policy was rejected. There is evidence that unanticipated stimulative, unanticipated contractionary, anticipated stimulative, and anticipated contractionary monetary policy each have statistically significant effects on output. Recognition of these asymmetries was found to make the finding of non-neutrality more likely.
    Original languageEnglish
    Pages (from-to)109-131
    Number of pages23
    JournalJournal of Economics and Business
    Volume51
    Issue number2
    DOIs
    Publication statusPublished - 1999

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 17 - Partnerships for the Goals
      SDG 17 Partnerships for the Goals

    Keywords

    • contractionary
    • expansionary
    • monetary policy

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