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The Impact Of Monetary Shocks On Regional Output: Evidence From Four South Eurozone Countries

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  • Angeliki ANAGNOSTOU

    (Department of Economics, University of Thessaly)

  • Stephanos PAPADAMOU

    (Department of Economics, University of Thessaly)

Abstract

This paper quantifies the importance of Optimal Currency Area (OCA) criteria for the monetary policy transmission mechanism at the regional level. The study employs a Bayesian PVAR model to measure the impact of monetary policy shocks on regional output of 58 regions of four South Euro-Zone countries: Greece, Spain, Italy and Portugal over the period 1980-2009. The results provide evidence of different regional responses of regional GDP on monetary policy shocks. The policy’s asymmetric effects are explained by employing the OCA framework.

Suggested Citation

  • Angeliki ANAGNOSTOU & Stephanos PAPADAMOU, 2014. "The Impact Of Monetary Shocks On Regional Output: Evidence From Four South Eurozone Countries," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 39, pages 105-130.
    • Handle: RePEc:tou:journl:v:39:y:2014:p:105-130
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    More about this item

    Keywords

    MONETARY POLICY; INTEREST RATE CHANNEL; PANEL VAR; OCA CRITERIA;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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