Regional Impact of Monetary and Fiscal Policy: A Comment*

Garrison, Charles B.; Kort, John R.

doi:10.1111/j.1467-9787.1983.tb00801.x

Cited by 22 publications

(15 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…A first type of study examines the monetarist explanation of the business cycles at the regional level by making use of reduced‐form models (e.g. Beare, ; Garrison and Kort, ). A second type of study employs large regional macro‐models (e.g.…”

Section: Methodological Analysismentioning

confidence: 99%

See 1 more Smart Citation

The Regional Effects of Monetary Policy: A Survey of the Empirical Literature

Domínguez-Torres

Recio

2018

Journal of Economic Surveys

View full text Add to dashboard Cite

This survey provides an updated review of the empirical literature on the regional effects of monetary policy in economic activity by means of undertaking a threefold perspective. First, the main methodological dimensions of this literature are examined while pinpointing those modelling or methodological traits that constitute a source of diverging estimates and thereby produce inconclusive evidence. Secondly, the estimates yielded by the literature are summarized by carrying out a crossstudy analysis of the results for each monetary union. By drawing on empirical regularities that are robust across studies, the conclusiveness of the results is assessed, while those monetary unions for which conclusive evidence is still lacking are also identified. Lastly, the sources of regional heterogeneity identified by these studies are reviewed in order to shed some light on the linkage between monetary policy and territorial heterogeneity. As a result of this threefold perspective, this survey delivers overall structured conclusions and updated policy-relevant lessons. Moreover, various research gaps and emerging topics in the literature are also identified.

show abstract

Section: Methodological Analysismentioning

confidence: 99%

“…Until the 1990s, studies almost exclusively focused on the United States (e.g. Garrison and Chang, ; Garrison and Kort, ; Carlino and DeFina, , ), and only occasionally on Canada (Beare, ). Closer to the end of the century, studies focused on Europe on the occasion of the launch of the Euro (e.g.…”

Section: Introductionmentioning

confidence: 99%

The Regional Effects of Monetary Policy: A Survey of the Empirical Literature

Domínguez-Torres

Recio

2018

Journal of Economic Surveys

View full text Add to dashboard Cite

show abstract

“…federal government expenditures, and the national money supply. These models are applied at the regional level to test the monetarist proposition that monetary policy has an important impact on nominal income (Toal, 1977;Garrison and Chang, 1979;Beare, 1976;Mathur and Stein, 1980;Garrison and Kort, 1983). 5 Garrison and Chang (1979) study regional manufacturing earnings in the eight major BEA regions during the 1969-1976 period and find that monetary policy has differential effects across regions, with an especially large impact in the Great Lakes region and a rather small impact in the Rocky Mountain region.…”

Section: Possible Credit Channelsmentioning

confidence: 99%

The Differential Regional Effects of Monetary Policy: Evidence from the U.S. States

Carlino

DeFina

1999

Journal of Regional Science

154

117

View full text Add to dashboard Cite

In this paper we use time-series techniques to examine whether monetary policy had symmetric effects across U.S. states during the 1958:1-1992:4 period. Impulse response functions from estimated structural vector autoregression models reveal differences in policy responses, which in some cases are substantial. We provide evidence on the reasons for the measured cross-state differential policy responses. The size of a state's response is significantly related to industry-mix variables, providing evidence of an interest rate channel for monetary policy, although the state-level data offer no support for recently advanced credit-channel theories.

show abstract

“…Esta investigación tuvo eco en estudios posteriores que, al reconocer la importancia de analizar las implicaciones regionales de las acciones de política monetaria, su atención se enfocó en la contrastación empírica de dichas hipótesis. Algunos de estos trabajos son los elaborados por Mathur y Stein (1980) y Garrison y Kort (1983), quienes mediante la estimación de modelos de ecuaciones simultáneas a escala regional proveyeron evidencia empírica a favor de los postulados teóricos propuestos por Beare (1976).…”

Section: Revisión De La Literaturaunclassified

Política Monetaria, Producción y Empleo Manufacturero en México

Preciado

2017

Revista de Economía

View full text Add to dashboard Cite

RESUMENEl objetivo de esta investigación es evaluar el efecto que una variación sorpresiva en la política monetaria induce en la trayectoria dinámica de la producción y el empleo manufacturero en México. Con dicha finalidad, se utiliza la descomposición propuesta por Blanchard y Quah (1989) que incorpora restricciones de largo plazo en un vector autorregresivo estructural. Los resultados indican que los choques de política monetaria tendrían efectos transitorios en la producción y empleo manufacturero mexicano, e inducirían una dinámica manufacturera similar a la desplegada por la actividad económica nacional, aunque su contribución es comparativamente modesta respecto a los choques de oferta y demanda. La trayectoria de la tasa de interés sugiere, claramente, una función estabilizadora del ciclo económico en el sector manufacturero.Palabras clave: política monetaria, sector manufacturero, vector autorregresivo estructural, México. ABSTRACTThe aim of this investigation is to evaluate the effect of an unexpected monetary policy change on the dynamic path followed by the production and employment in manufacturing in Mexico. The Blanchard and Quah (1989) decomposition is applied under a structural autoregressive vector model with long run restrictions. Results suggests monetary shocks induce transitory effects on production and employment in manufacturing, and would induce a dynamic path in manufacturing similar to that followed by the national economic activity, though its effect is modest in comparison to supply and demand shocks. The trajectory followed by the interest rate suggest it clearly functions as a stabilizing factor of the manufacturing business cycle.

show abstract

Regional Impact of Monetary and Fiscal Policy: A Comment*

Cited by 22 publications

References 7 publications

The Regional Effects of Monetary Policy: A Survey of the Empirical Literature

The Regional Effects of Monetary Policy: A Survey of the Empirical Literature

The Differential Regional Effects of Monetary Policy: Evidence from the U.S. States

Política Monetaria, Producción y Empleo Manufacturero en México

Contact Info

Product

Resources

About