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Monetary Policy and Business Cycle Asymmetry in Germany

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Kakes, J. Monetary Policy and Business Cycle Asymmetry in Germany. Credit and Capital Markets – Kredit und Kapital, 33(2), 182-197. https://doi.org/10.3790/ccm.33.2.182
Kakes, Jan "Monetary Policy and Business Cycle Asymmetry in Germany" Credit and Capital Markets – Kredit und Kapital 33.2, 2000, 182-197. https://doi.org/10.3790/ccm.33.2.182
Kakes, Jan (2000): Monetary Policy and Business Cycle Asymmetry in Germany, in: Credit and Capital Markets – Kredit und Kapital, vol. 33, iss. 2, 182-197, [online] https://doi.org/10.3790/ccm.33.2.182

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Monetary Policy and Business Cycle Asymmetry in Germany

Kakes, Jan

Credit and Capital Markets – Kredit und Kapital, Vol. 33 (2000), Iss. 2 : pp. 182–197

1 Citations (CrossRef)

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Jan Kakes, Amsterdam

Cited By

  1. Économétrie des modèles à changement de régimes : un essai de synthèse

    Uctum, Remzi

    L'Actualité économique, Vol. 83 (2008), Iss. 4 P.447

    https://doi.org/10.7202/019389ar [Citations: 0]

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Abstract

Monetary Policy and Business Cycle Asymmetry in Germany

In this paper, we investigate whether the impact of monetary policy on industrial production in Germany is larger in a recession than during a boom. Using a two-state Markov Switching Model to separate recessions and expansions, and three different policy indicators, we find strong evidence of asymmetric effects of monetary policy over the business cycle. Our findings imply that standard linear approaches, such as VAR models, ignore important time-varying aspects of the monetary transmission mechanism. (JEL E32, E52)