Regional Vars and the Channels of Monetary Policy
FRB of St. Louis Working Paper No. 2006-002A
10 Pages Posted: 6 Jan 2006
Date Written: January 2006
We find that the magnitudes of the regional effects of monetary policy were considerably dampened during the Volcker-Greenspan era. Further, regional differences in the depths of monetary-policy-induced recessions are related to the concentration of the banking sector, whereas differences in the total cost of these recessions are related to industry mix.
Keywords: regional monetary policy
JEL Classification: E52, R12
Suggested Citation: Suggested Citation