Authors
Abstract
Empirical studies show that money has real effects in short-run but is neutral in long-run. According to transmission chanels of monetary policy, there is a possibility that each sector has a different response to monetary shocks. This paper, using the BVAR method and seasonal data, investigates the sectoral effects of monetary shocks during 1988:Q2 to 2011:Q2. The results show that monetary shocks have real effects in short-run and the reaction of sectors are different. In addition, the effects of moneatary shocks on services and industry sectors are stronger than on agriculture sector.
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