Monetary Actions and Sub-macroeconomic Impacts: A Multi-period Assessment

Abstract

This study investigates monetary impacts within the regional economies ofthe United States. It provides updated evidence on regional impacts and examines howimpacts have changed over time. Using vector autoregression (VAR) methods, impactsare investigated for the overall period (1959-2003), and two sub-periods, 1959-1979 and1980-2003. The study finds that regional economies do respond differently to monetaryshocks. Evidence also indicates that these effects have changed over time; pre-1980patterns no longer apply in many key regions. Notable in the results are the muchmoderated period two impacts and shifting across region's ranking as "stronger/weakerthan average" impacts. (JEL E0, E5, R11)