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2 edition of differential effects of monetary policy shocks on regional economic activity found in the catalog.

differential effects of monetary policy shocks on regional economic activity

Gerald Carlino

differential effects of monetary policy shocks on regional economic activity

by Gerald Carlino

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  • 14 Currently reading

Published by Federal Reserve Bank of Philadelphia, Economic Research Division in Philadelphia .
Written in English


Edition Notes

StatementGerald Carlino and Robert DeFina.
SeriesEconomics working paper series / Federal Reserve Bank of Philadelphia, Economic Research Division -- no.95-15, Economics research working paper (Federal Reserve Bank of Philadelphia, Economic Research Division) -- no.95-15.
ContributionsDeFina, Robert.
ID Numbers
Open LibraryOL21359747M

The industrial impact of monetary shocks during the inflation targeting era in Australia Joaquin L. Vespignani University of Tasmania, School of Economics and Finance Abstract In this article we analyse the industrial impact of monetary shocks . In this paper, we test the differential effects of monetary policy shock on aspects of banks' balance sheets (deposits, loans, and securities) across bank categories (aggregate banks, .

1 Hence, if a monetary policy shock occurs in the latter half of the year, when wages are being reset, the shock will have a larger effect on labor costs and a smaller effect on output relative . Common Monetary Area (CMA) and an array of broader grouping among Southern African different shocks to opt for a common monetary policy. Hence, absent fluid labor and capital the regional monetary policy File Size: KB.

For industrial production, the impact of the monetary shock peaks after 33 months, at which time industrial production is 12 percent lower than it would have been without a monetary shock. . (), I extract a measure of monetary policy shocks from an estimated Taylor rule with time-varying parameters. The resulting shock series, which should identify a nar - rower set of monetary policy shocks, namely innovations to the policy rule rather than changes in the coefficients of the rule, yields real effects of monetary policy shocks.


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Differential effects of monetary policy shocks on regional economic activity by Gerald Carlino Download PDF EPUB FB2

MONETARY POLICY AND REGIONAL ECmOMIC ACTIVITY Introduction It has been accepted by regional-urban economists that fiscal policy has a differential impact with respect to economic regions. Federal ex­ penditures are used to improve a specific region's economic position relative to other regions.

In the case of monetary policy shock (Figure2), interest rate increases, while prices and monetary base decrease by construction.

Both revenue and spending increase mo- mentarily Author: Igor Ézio Maciel Silva. Taken together, the evidence suggests that immediately after a positive monetary policy shock is realized, unconstrained firms are traded lower on the event day, thus generating a positive return differential between the constrained and unconstrained firms that is on average % for a positive 1% surprise increase.

They study the effect of regional monetary shocks on regional housing prices, with their identification strategy implicitly abstracting from the aggregate effects of national monetary policy changes. The regional monetary policy shocks are estimated based on a counterfactual monetary policy rule.

The Effects of Monetary and Exchange Rate Policy Shocks: Evidence from an Emerging Market Economy∗ Yasin Kursat Onder and Mauricio Villamizar-Villegasa aCentral Bank of Colombia Many central banks that have opted for monetary. First, following a contractionary shock to monetary policy, net funds raised by the business sector increases for roughly a year.

Thereafter, as the recession induced by the policy shock gains momentum, net funds raised by the business sector begins to fall. This pattern is not captured by existing monetary business cycle models. Monetary policy shocks: some possible interpretations 3. Vector autoregressions and identification 4.

The effects of a monetary policy shock: a recursiveness assumption The recursiveness assumption and VARs Three benchmark identification schemes The benchmark policy shocks. evidence reveals that tight monetary policy, which, in this case, is captured with a positive shock.

to interest rate, decreases exchange rate, output and prices, as economic theory suggests. Loose. monetary policy, which is captured with a negative shock to interest rate, has the opposite effect. This paper uses Structural Vector Autoregressive (SVAR) method to measure the regional effects of monetary policy in China during – The results provide evidence of different regional responses of real variables monetary policy shocks.

This paperto proves that M2 is a better monetary policy indicator. Traditionally, monetary policy is assumed to stabilize economic activity and inflation without affecting the economy’s productive ca-pacity—that is, its potential output. However, if weak demand erodes capacity, then monetary policy may be able to expand capacity by stimulating economic activity.

Accommodative monetary policy. This paper studies the small estimated effects of monetary policy shocks from standard VARs versus the large effects from the Romer and Romer () approach. The.

Are the Effects of Monetary Policy Shocks Big or Small. Olivier Coibion. NBER Working Paper No. Issued in May NBER Program(s):Economic Fluctuations and Growth, Monetary Economics This paper studies the small estimated effects of monetary policy shocks from standard VAR's versus the large effects.

Kim () presents structural VAR estimates of the effects of U.S. monetary policy shocks on the non-U.S. G-7 countries. 1 An interesting difference between Kim's results and this paper's results is that Kim does not find support for the view that the spillover effects of U.S.

monetary policy shocks Cited by: Supply Shocks and the Conduct of Monetary Policy Takatoshi Ito As I see it, everybody else has considered this problem. The supply shock is a major challenge to an inflation targeter. It has been agreed that against demand shocks File Size: KB. Downloadable.

Author(s): Joe Ganley & Chris Salmon. Abstract: This paper investigates the disaggregated effects of monetary policy shocks on the output of 24 sectors of the UK economy. The paper's principal aim is to provide stylised facts about the sectoral responses to unexpected changes in monetary policy and to help assess how monetary policy.

exogenous shocks to monetary policy. Our strategy is closely related to recent work on the interest rate effects of monetary policy shocks in closed economy settings.2 To assess the robustness of our results, we consider three measures of monetary policy shocks Cited by: Fig.

2 shows the empirical densities of the difference between the peak (left panels) and cumulative effects (right panels) of monetary policy shocks referring to a low uncertainty Cited by: The Effects of Monetary Policy Shocks on Inequality.

Prepared by Davide Furceri (IMF), Prakash Loungani (IMF), and Aleksandra Zdzienicka (IMF) Authorized for distribution by Prakash Loungani December Abstract. This paper provides new evidence of the effect of monetary policy shocks File Size: KB.

Accounting for these factors, the real effects of monetary policy shocks are consistent across approaches and are most likely medium: a one-hundred basis point innovation to the Federal Author: Olivier Coibion. Fiscal Volatility Shocks and Economic Activity by Jesús Fernández-Villaverde, Pablo Guerrón-Quintana, Keith Kuester and Juan Rubio-Ramírez.

Published in volumeis pages of American Economic. monetary policy shocks have a discernible impact on Canadian regional economic activity, but the impact varies across regions. Relevant studies have been conducted in Europe. For instance, Arnold and Vrugt () studied the effects of monetary policy in the German regional .regional effects of monetary policy.5 they assume that monetary policy-makers can react to a shock or unan-ticipated change in a region’s personal income growth in the same quarter.

Personal income, however, responds to changes in monetary policy only in subsequent quarters because mon-etary policy affects the economy .• External shocks have a minimal effect on the long-run course of economic growth.

• External shocks have a very profound effect on domestic monetary and fiscal policies. To address the .