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The single monetary policy and domestic macro-fundamentals: Evidence from Spain Author info | Abstract | Publisher info | Download info | Related research | Statistics Arghyrou, Michael G () (Cardiff Business School)
Gadea, Maria Dolores
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We model pre-euro Spanish monetary policy and use our findings to assess the compatibility of the interest rates set by the ECB since 1999 with Spanish macrofundamentals. We find that in the 1990s Spain implemented successfully a monetary strategy tailored to its own domestic fundamentals; and by abolishing it to join the euro she has paid a cost in the form of a sub-optimal monetary policy. Spain.s experience suggests a cautious approach with regards to the timing of further EMU enlargement.
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Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number
E2008/23.
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Length: 33 pages
Date of creation: Oct 2008Date of revision:
Handle: RePEc:cdf:wpaper:2008/23Contact details of provider: Postal: Aberconway Building, Colum Drive, CARDIFF, CF10 3EU Phone: +44 (0) 29 20874417 Fax: +44 (0) 29 20874419 Web page: http://www.cardiff.ac.uk/carbs/econ/index.html More information through EDIRC
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Keywords: Spain ; ECB ; monetary policy ; domestic fundamentals ; compatibility ; Other versions of this item:
Find related papers by JEL classification: C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Determination of Interest Rates; Term Structure of Interest Rates E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation
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