Regional asymmetries in the impact of monetary policy shocks on prices: Evidence from US cities
Fielding, David; Shields, Kalvinder
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 theasymmetry can be explained by city-specific economic characteristics.
Publisher: University of Otago
Series number: 702
Keywords: Law of One Price; monetary policy shocks
Research Type: Discussion Paper
JEL Classification: E31, E52, R19