The Asymmetric Effects of Monetary Policy on Job Creation and Destruction
Author | : Mr.Pietro Garibaldi |
Publisher | : International Monetary Fund |
Total Pages | : 31 |
Release | : 1997-04-01 |
ISBN-10 | : 9781451967555 |
ISBN-13 | : 1451967551 |
Rating | : 4/5 (55 Downloads) |
Download or read book The Asymmetric Effects of Monetary Policy on Job Creation and Destruction written by Mr.Pietro Garibaldi and published by International Monetary Fund. This book was released on 1997-04-01 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. First, it solves a dynamic matching model and it shows how interest rate changes result in an asymmetric response of job creation and destruction. Second, it looks at how changes in the federal fund rate affect gross job flows in the U.S. manufacturing industry, and it finds evidence of asymmetry. Tight policy increases job destruction and reduces net employment changes. Conversely, easy policy appears ineffective in stimulating job creation.