Asymmetrical effects

Abstract— The merit of ABM comes directly from removing set of unreal assumptions that are commonly assumed in standard models. Not only can ABM regenerates macroeconomics regularities at the same level as the traditional models without introducing any exogenous process but also displays the ability to capture microeconomics dynamics. Simulation results conform to standard monetary economics theory—expansionary monetary policy can be used as a stabilization tool and leave no permanent impacts to real variables. When an economy experiences growth, an increase in money supply is required to stabilize price level, otherwise, severe deflation is expected as well as high fluctuations in unemployment level. Simple monetary policy can be used to stabilize such fluctuations and would reduced economy-wide default risk, which may have positive economic impacts in the long run. Provided that agents do not hold assets in this model setup, the study supports Friedman’s K-percent rule as it performs the best in term of output improvement. The asymmetric effects of monetary policy are found in number of aspects: impact to GDP, impact duration, and impact to unemployment level. Less flexibility in downward price adjustment is the reason behind such asymmetric responses.

The recent UK referendum results and subsequent initiation of Article 50 in the 2007 Lisbon Treaty set in motion the UK's withdrawal from the European Union, acknowledge as Brexit. The result and subsequent action were unprecedented and for many unforeseeable. Apart from the political instability and division of the country, the complicated and long process of Brexit have both economic and financial consequences. With this in mind, we analyse the impact of Brexit on four main British financial markets: Equity, Foreign Exchange, Gold and Sovereign Debt; using daily data. We extendthe variance bound test proposed by Fakhry & Richter (2018) underpinned by an asymmetrical C-GARCH-m model of volatility. Unlike many in the past, we placed the emphasis on the stable markets; thus introducing the stable marketpre-condition hypothesis. We analyse the long and short run effects of Brexit on the stability of the UK's financial market. Our results hint at a certain impact on the UK's financial market in both the long and short runs on the market stability and hence efficiency. This seems to be dictated by the reaction of market participants to uncertainty surrounding the future of the UK

This study examines the effects of economic uncertainty on tourism demand in India for the period 2006:01 to 2018:04. This study has two major contributions. First, using the nonlinear autoregressive distributed lag technique, the asymmetric effects are tested and second, it provides evidence for both long- and short-run effects. The estimated results have confirmed that economic uncertainty has asymmetric effects on tourism demand. Specifically, it is shown that increasing uncertainty has more penetrating negative effects than the positive effects caused by decreasing uncertainty.