The effects of economic shocks that cause contraction andexpansion on real variables could appear to be different interms of speed, intensity, and rate. Positive and negativeshocks cause asymmetric movement on the real variablebecause these shocks produce different effects from eachother. The question of whether real variables movementas asymmetric firstly came up with the studies of Keynes(1936) and Burns and Mitchell (1946) and has been the focusof theoretical and empirical studies up to now. Because theinterest on this subject has caused theoretical and empiricaldebates, the purpose of this study is to investigate theasymmetric effects of monetary shocks on real productionfor Turkish economy at the period of 1990:I-2010:IV. For thepurpose, a two-stage estimation method that was used byBarro (1977) has been used in this study. Monetary equationhas been estimated in the first-stage. The method of Cover(1992) has been used to decompose monetary shocks, havebeen obtained from error terms of the monetary equation,as positive and negative. In the second-stage, with the aidof real GDP equation that contains positive and negativemonetary shocks, whether monetary shocks have an effectasymmetrically on real production has been tested withinframework of three different hypotheses. Empirical resultsimply that real output in Turkey is not equally affectedby positive and negative monetary shocks and thereforemonetary shocks have asymmetric effects on real output.