A Pattern of Regional Differences in the Effects of Monetary Policy - Business Review, Third Quarter 2007

When he wrote this article, Ted Crone was a vice president and economist in the research Department of the Philadelphia Fed and head of the regional and microeconomics section. he has since retired. this article is available free of charge at www.philadelphiafed.org/econ/br/index. lthough there is only one national monetary policy, that does not mean that monetary policy does not affect some regions of the country more than others. We know that business cycles differ across states and regions, and a number of studies have examined how monetary policy may affect regions differently and why. A review of these studies reveals that certain parts of the country are consistently more affected by monetary policy than others. identifying the reasons for regional differences in the effects of monetary policy may help us better understand how changes in monetary policy ripple through the economy. in this article, ted crone reviews where the research has brought us so far.