This paper attempts to identify the effects of monetary policy shock on output and price level in Thailand during 2005Q … employed to identify the monetary policy shock. To enhance the precision of the model specification, the short-run restrictions … simultaneously with each other. The results from the analysis of the structural model reveal that a shock to monetary policy drives …

prices as the economic theory suggest. The effects of the loose monetary policy, which is captured with a negative shock to … tight monetary policy, which is captured with a positive shock to interest rate, decrease the exchange rate, output and …. Moreover, as the magnitude of shock increases, the difference between the effects of tight and loose monetary policy policies …

financial shocks generate effects on the economy that increase more than proportionately in the size of the shock when the shock … is negative, but not when the shock is positive …