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Regional Asymmetries in the Impact of Monetary Policy Shocks on Prices: Evidence from US Cities *
Author(s) -
Fielding David,
Shields Kalvinder
Publication year - 2011
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/j.1468-0084.2010.00608.x
Subject(s) - economics , monetary policy , monetary economics , exchange rate , distribution (mathematics) , asymmetry , mathematical analysis , physics , mathematics , quantum mechanics
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.