Monetary and Real Shocks in a Monetary Union: The Swiss Case.
We analyze to what extent real and monetary shocks affect price levels and real exchange rates in seven Swiss regions. A structural time series model is set up and estimated using the Kalman filter under two assumptions on the persistence of monetary shocks. We find that the variability of changes in price levels is mainly due to real shocks. The variance of monetary shocks is small but the monetary component of inflation differences across regions differs from zero with some persistence. As the Swiss case shows, this does not seem to be a major obstacle to forming a monetary union.
Year of publication: |
1995
|
---|---|
Authors: | Jordan, Thomas J ; Lenz, Carlos |
Published in: |
Empirical Economics. - Department of Economics and Finance Research and Teaching. - Vol. 20.1995, 4, p. 635-49
|
Publisher: |
Department of Economics and Finance Research and Teaching |
Saved in:
Saved in favorites
Similar items by person
-
Seigniorage and the Transfer of Central Bank Profits to the Government.
Baltensperger, Ernst, (1998)
-
Inflation und die Geldpolitik der Schweizerischen Nationalbank
Jordan, Thomas J, (2010)
-
Reale Konjunkturmodelle und aggregierte Fluktuationen in der Schweiz
Lenz, Carlos, (1995)
- More ...