This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. First, it solves a dynamic matching model and it shows how interest rate changes result in an asymmetric response of job creation and destruction. Second, it looks at how...

This paper presents theory and evidence on the asymmetric effects of monetary policy on job creation and job destruction. Tight policy increases job destruction an reduces net employment changes. Conversely, easy policy appears ineffective in stimulating job creation