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September/October 2004, 
Vol. 86, No. 5
Posted 2004-09-01

Asymmetric Effects of Monetary Policy in the United States

by Morten O. Ravn and Martin Sola

Using M1, the authors achieve results that match previous findings on the size and sign of monetary policy shocks: Positive shocks have larger real effects. Using the federal funds rate, however, they find that only small negative shocks affect real aggregate activity.