Editorial
In this paper Sylvia Kaufmann investigates whether monetary policy has asymmetric effects over the business cycle. For this she estimates a univariate model for GDP that additionally includes the first difference of the 3-month Austrian interest rate as a measure for monetary policy. The asymmetry of the effects is captured by allowing for state-dependent parameters where the latent state variable follows a Markov switching process. The model itself is estimated within a Bayesian framework using Markov Chain Monte Carlo simulation methods. The results document significant negative effects of monetary policy during periods of below-average growth, while the effects seem insignificant during periods of normal or above-average growth, thereby lending support to theoretical models with price rigidities that imply a convex supply curve.