: Because of the menu cost, commodity price is sticky in a certain degree. When money supply has a small change, price will not change by the same proportion of money supply shock, and the small money supply changes exert real effects on the aggregate real output. In other words, monetary policy exerts asymmetry effects on real output. This paper tests for the presence of asymmetric effects of monetary policy based on the menu cost models and finds that effects of monetary policy will be restricted by menu cost. In order to adjust and control economy perfectly, we should control the scale of money supply shocks.

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