When economists say that monetary policy can exhibit cyclical asymmetry, this means?

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Business

Pierce Maxwell

11 December, 12:56

When economists say that monetary policy can exhibit cyclical asymmetry, this means?

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Answers (2)

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Alexis Zimmerman · Answer 1

When economists say that monetary policy can exhibit cyclical asymmetry, this simply means that expansionary and restrictive monetary policy do not have the same potential for economic contraction and expansion. This is an imbalance in terms of economic factors in the economy.

Emanuel Myers · Answer 2

This implies expansionary and prohibitive monetary policy does not have a similar potential for financial development and withdrawal.

Monetary policy is less demanding to lead than monetary policy in light of the fact that money related strategy has a considerably shorter authoritative slack than monetary strategy. A noteworthy quality of money related strategy is its speed and adaptability.