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Regional VARs and the channels of monetary policy

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  • Michael Owyang
  • Howard Wall

Abstract

We find that the magnitudes of the regional effects of monetary policy were considerably dampened during the Volcker-Greenspan era. For this era, regional differences in the depths and total costs of monetary-policy-induced recessions were related to the concentration of the banking sector.

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  • Michael Owyang & Howard Wall, 2009. "Regional VARs and the channels of monetary policy," Applied Economics Letters, Taylor & Francis Journals, vol. 16(12), pages 1191-1194.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:12:p:1191-1194
    DOI: 10.1080/13504850701367247
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