On the transmission of the effects of monetary policy to the regions

In the paper the theoretical framework is that of credit rationing theory, the regional differences being examined in terms of both financial markets and the real economy. Empirically the focus is upon regional trends in market conditions and the timelags experienced in the effects of monetary policies in two different regions. The period of time examined is from 1970 to 1978, the changes in the marginal interest on central bank credit issued to the commercial banks being taken as the indicator of monetary policy and data on employment opportunities vacant in the regions as representing market conditions and the delay‐effects of monetary policy. The methods used are those of cross‐correlation analysis.