We are grateful to two anonymous referees and seminar participants at Canterbury University, Deakin University, the Centre for Central Banking Studies and the Reserve Bank of New Zealand for comments on earlier drafts of this paper. All remaining errors are our own.
Regional Asymmetries in the Impact of Monetary Policy Shocks on Prices: Evidence from US Cities*
Article first published online: 25 OCT 2010
© Blackwell Publishing Ltd and the Department of Economics, University of Oxford, 2010
Oxford Bulletin of Economics and Statistics
Volume 73, Issue 1, pages 79–103, February 2011
How to Cite
Fielding, D. and Shields, K. (2011), Regional Asymmetries in the Impact of Monetary Policy Shocks on Prices: Evidence from US Cities. Oxford Bulletin of Economics and Statistics, 73: 79–103. doi: 10.1111/j.1468-0084.2010.00608.x
- Issue published online: 7 JAN 2011
- Article first published online: 25 OCT 2010
- Final Manuscript Received: May 2010
Variations in real exchange rates across US cities are smaller than corresponding international variations, but nevertheless substantial. We find that a proportion of these variations can be explained by asymmetric responses to federal monetary policy shocks, and that a large part of the asymmetry can be explained by city-specific economic characteristics including the composition of local industry, bank size, house prices and the age distribution of the population.