One Nation Under the Fed? The Asymmetric Effects of U.S. Monetary Policy and Its Implications for the United States as an Optimal Currency Area
Texas State University
June 30, 2009
Is the United States best served by a single currency? This question is explored in this paper by looking at the regional effects of U.S. monetary policy shocks through the perspective of the Optimal Currency Area framework. Using monthly state-level data for the period 1983:1 to 2008:3, this paper finds that some regions of the United States during this time may have benefited from having their own currency.
Number of Pages in PDF File: 34
Keywords: optimal currency area, regional effects of monetary policy, U.S. monetary policy, vector autoregressions
JEL Classification: C32, E32, E52, E58, L16, R11working papers series
Date posted: July 27, 2009 ; Last revised: September 21, 2009
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