Regional VARS and the channels of monetary policy

Regional VARS and the channels of monetary policy

by Michael T. Owyang

Part of Working paper -- 2006-002A

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"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"--Federal Reserve Bank of St. Louis web site.

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