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EMU and the regional impact of monetary policy

Rodriguez-Fuentes CJ & Dow S (2003) EMU and the regional impact of monetary policy, Regional Studies, 37 (9), pp. 969-980.

EMU and the regional impact of monetary policy, Reg. Studies 37, 969- 980. In this paper we focus on a topic which has been attracting renewed interest because of monetary unification in Europe: the regional dimension of national monetary policies. Most of the debate over the regional implications of the Euro has been developed within the Optimum Currency Area framework. According to this theory, European monetary policy would have regional effects when the countries of the Euro-zone had such structural differences as to produce asymmetric shocks. These asymmetrical effects could only be offset by labour mobility and wage/price flexibility. However, we argue here that, in addition, European monetary policy may have more general regional effects, including in particular by producing a higher instability in the pattern of credit availability for some peripheral regions. This latter possibility, and the forces underlying it, are explored here both at the theoretical level and the empirical level, examining the process by which monetary policy is transmitted.

monetary policy; regional effects; credit availability

AuthorsRodriguez-Fuentes Carlos J, Dow Sheila
Publication date12/2003
Publication date online03/06/2010
PublisherTaylor and Francis
ISSN 0034-3404

Regional Studies: Volume 37, Issue 9 (DEC 2003)

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