Regional Asymmetries in the Impact of Monetary Policy Shocks on Prices: Evidence from US Cities
Deviations from the Law of One Price across US cities are smaller than corresponding international deviations, but nevertheless substantial. We find that a proportion of these deviations can be explained by asymmetric responses to federal monetary policy shocks, and that a large part of the asymmetry can be explained by city-specific economic characteristics.
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|Date of revision:||Feb 2007|
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