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The issue of asymmetric effects of monetary shocks on the economy is among the new topics that have been studied by the New Keynesians. How to monetary shocks affect macroeconomic variables such as gross domestic product (GDP), prices, private investment in terms of nominal and real sectors, and economic policy-making is of great importance. In this study, according to the New-Keynesian assumptions, the effects of asymmetry in monetary shocks are examined using dynamic stochastic general equilibrium model in Iran's economy during 1979-2012. The results indicate that positive and negative monetary shocks are endogenous and depend on inflationary regimes in the Iranian economy, so that the effects of positive and negative shocks on GDP and private investment in the low inflation regime are more than those of high inflation regime. In addition, the effects of positive and negative shocks on the general prices' level in the high inflation regime are higher than those of low inflation regime.

Keywords: Asymmetric Effects, Monetary Shocks, GDP, Inflation Regimes, Investment, Dynamic Stochastic General Equilibrium Model (DSGE Model)

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