Nagayasu, Jun (2012): Regional inflation and industrial structure in monetary union.
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It is often argued that an optimal currency area requires homogeneous regional inflation. However, previous empirical studies point out heterogeneity in sectoral inflation and geographical concentration of industries within a monetary union. It follows that there must be a difference in regional inflation in such a union. We examine this view using regional data from Japan which has experienced a period of rapid change in industrial structure, and show that economic structure is closely related to heterogeneous regional inflation. This study suggests that heterogeneous inflation can be a prevailing and long-lasting phenomenon in a monetary union.
|Item Type:||MPRA Paper|
|Original Title:||Regional inflation and industrial structure in monetary union|
|Keywords:||Regional inflation, Monetary union, Optimal currency area, Industrial structure|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
|Depositing User:||Nagayasu Jun|
|Date Deposited:||13. Mar 2012 12:49|
|Last Modified:||16. Feb 2013 03:33|
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