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Economic Brief

January 2015, No. 15-01

Why Does the Fed Study Regional Economics?

Ann Battle Macheras, Santiago Pinto, Jessie Romero and Pierre-Daniel G. Sarte

All of the 12 Federal Reserve Banks study the economies of their regions, but how is this information used? Regional data historically haven't swayed monetary policy decisions, but they provide policymakers and researchers with timely information about economic conditions and with context for interpreting data obtained from other sources.

Additional Resources

Acemoglu, Daron, Vasco M. Carvalho, Asuman Ozdaglar, and Alireza Tahbaz-Salehi, "The Network Origins of Aggregate Fluctuations," Econometrica, September 2012, vol. 80, no. 5, pp. 1977-2016. (A previous version is available online.)

Blanchard, Olivier Jean, and Lawrence F. Katz, "Regional Evolutions," Brookings Papers on Economic Activity, 1992, no. 1, pp. 1-75.

Caliendo, Lorenzo, Fernando Parro, Esteban Rossi-Hansberg, and Pierre-Daniel G. Sarte, "The Impact of Regional and Sectoral Productivity Changes on the U.S. Economy," Federal Reserve Bank of Richmond Working Paper No. 13-14R, Revised November 2014.

Courtois, Renee, "How's Business? The Role of the Beige Book in Fed Policymaking," Federal Reserve Bank of Richmond Region Focus, Summer 2009, pp. 5-7.

Foerster, Andrew T., Pierre-Daniel G. Sarte, and Mark W. Watson, "Sectoral versus Aggregate Shocks: A Structural Factor Analysis of Industrial Production," Journal of Political Economy, February 2011, vol. 119, no. 1, pp. 1-38. (A working paper version is available online.)

Gabaix, Xavier, "The Granular Origins of Aggregate Fluctuations," Econometrica, May 2011, vol. 79, no. 3, pp. 733-772. (A working paper version is available online.)

Harris, Matthew, Raymond E. Owens, and Pierre-Daniel G. Sarte, "Using Manufacturing Surveys to Assess Economic Conditions," Federal Reserve Bank of Richmond Economic Quarterly, Fall 2004, vol. 90, no. 4, pp. 65-92.

Owens, Raymond E., and Pierre-Daniel G. Sarte, "How Well Do Diffusion Indexes Capture Business Cycles? A Spectral Analysis," Federal Reserve Bank of Richmond Economic Quarterly, Fall 2005, vol. 91, no. 4, pp. 23-42.

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