The effects of monetary policy on the economy show
different with respect to its direction, power and the different
economic cycle. That is to say, there exists asymmetry in the role
of monetary policy. It's important to research this asymmetry for
monetary policy making and keeping economy's steady growth In this
paper, we aim to study the asymmetry in the role of monetary
policy with respect to the different economic cycle. First,
monetary shock is estimated by using monetary gap and output gap
is calculated via HP filter method. Second, based on the monetary
gap and output gap, the asymmetric impacts of monetary gap are
measured by STR model. The results show that the impacts of
monetary shock on economy are asymmetrical significantly. The
impact of monetary policy on economy in
upturn stage is larger than its impact in downturn stage.