An Examination of the Asymmetric Effects of Money Supply Shocks in the Pre-World War I and Interwar Periods
نویسندگان
چکیده
Building upon the work of Cover (1992), a sizeable literature has developed in which the asymmetry of money supply shocks has been empirically investigated. The bulk of this work has focused on post-Word War II data. Accordingly, we study this question with U.S. data from both the interwar period and a near 40-year pre-World War I period. We find strong evidence in favor of monetary shock asymmetry only for the latter stage of the Great Depression, and speculate that the appearance of this asymmetry was due to the rather unique institutional and financial circumstances that prevailed at the time.
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