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Papers by Carlos J. Rodriguez-Fuentes
The Caribbean Economies in an Era of Free Trade, 2017
Routledge eBooks, Oct 20, 2022
Papers in Regional Science, 2005
Rodriguez-Fuentes C. J. and Padron-Marrero D. Industry effects of monetary policy in Spain, Regio... more Rodriguez-Fuentes C. J. and Padron-Marrero D. Industry effects of monetary policy in Spain, Regional Studies. The aim of this paper is to analyse the presence of sectoral asymmetries in monetary policy transmission in Spain in the period before the introduction of the single monetary policy in Europe (1988-98). Monetary policy shocks are identified through both a standard vector auto-regression model
List of Figures List of Tables Acknowledgements 1. Introduction 2. A Dichotomised View of the Eco... more List of Figures List of Tables Acknowledgements 1. Introduction 2. A Dichotomised View of the Economic Process 3. Beyond Transmission Mechanisms 4. The Regional Effects of Monetary Policy. A Theoretical Framework 5. Monetary Policy, Financial Flows and Credit Markets. A Survey of the Regional Literature 6. Some Empirical Evidence 7. Conclusions Notes References Author Index Subject Index
The on-going banking crisis has demonstrated the significance of banking for economic growth. Whi... more The on-going banking crisis has demonstrated the significance of banking for economic growth. While banks as creators of money are important for the functioning of the economy, bank lending to productive enterprises is necessary for economic activity. Much of the international policy discussion supports the notion of reform of banking structure to allow banks to perform these two functions more effectively. On the one hand there is a discussion of separating traditional banking functions from those which exposed the system to excessive risk, i.e. separating ‘good’ banking from ‘bad’ banking. At the same time there has been discussion of the relative merits of large-scale banking concentrated in financial centres and smaller-scale local banking.
The aim of this paper is to analyze the theoretical limitations of the mainstream’s Works related... more The aim of this paper is to analyze the theoretical limitations of the mainstream’s Works related to the regional impacts of monetary policy. After a general presentation of the conventional framework, followed by the typology proposed in Dow & Rodriguez-Fuentes (1997), we present our arguments based on the Post-Keynesian theory against the traditional approach. In our view, the Post-Keynesian framework is the most appropriate for analyzing this type of dynamics. Its theoretical elements have the best explanation for the dynamics of the monetary policy at a regional level, once they take into account the role played by uncertainty and liquidity preference of economic agents and institutions, which are essential for the understanding the regional economics in a "center – periphery” context.
The primary goal of the European Central Bank’s (ECB) monetary policy is to achieve price stabil... more The primary goal of the European Central Bank’s (ECB) monetary policy is to achieve price stability. Whereas during the 1980s and 1990s there was a rapid and strong convergence in terms of price differential among the Euro countries, particularly in those countries with higher inflation rates in the past, single monetary policy has proved to be quite inefficient in continuing this trend and has not achieved further reductions in inflation rate differentials within the euro zone. Since the ECB sets the official interest rate according to the average inflation of the euro area, the persistence of such price differentials within the area would mean that the “one size interest rate policy” would not fit all. This paper studies empirically the inflation rate differentials and their persistence in some currency unions with the aim to draw some conclusions for the working of the ECB monetary policy. KEYWORDS: monetary policy; inflation persistence; currency unions
Brazilian Journal of Political Economy
This paper provides a theoretical account of the role of regional differences in cyclical pattern... more This paper provides a theoretical account of the role of regional differences in cyclical patterns of credit availability for patterns of regional convergence or divergence. While mainstream theories imply either equalising regional capital flows, or else lower credit availability for peripheral regions due to market imperfections, Post-Keynesian theory of liquidity preference and financial structure imply the scope for greater credit volatility for peripheral regions, especially in downturns, contributing to real economic divergence. This latter account is assessed by means of an empirical analysis of patterns in bank credit over the business cycle among the Spanish regions and Eurozone countries.
… Comercial Española, ICE: …, 2000
Resumen: La consideración de la literatura financiera regional resulta útil para el análisis de l... more Resumen: La consideración de la literatura financiera regional resulta útil para el análisis de la influencia que puede ejercer el sector financiero en el proceso de convergencia entre las economías de la Unión Europea que forman parte de la zona euro. En este trabajo se ...
Regional Studies, 2003
rodr??guez-fuentes CJ and dow SC (2003) EMU and the regional impact of monetary policy, Reg. Stud... more rodr??guez-fuentes CJ and dow SC (2003) EMU and the regional impact of monetary policy, Reg. Studies 37, 969???980. In this paper we focus on a topic which has been attracting renewed interest because of monetary unification in Europe: the regional dimension of ...
ERSA conference …, 1999
The purpose of this paper is to consider the implications of European monetary integration for pe... more The purpose of this paper is to consider the implications of European monetary integration for peripheral economies within Europe, with a particular focus on the experience of Spain. The view represented in the European Commission's own research is summarised as ...
Papers in Regional Science, 1998
To many economists financial factors play no role in regional development since they usually assu... more To many economists financial factors play no role in regional development since they usually assume that money can only affect the general level of prices but not the real output, that is, money is neutral to the economic process. According to this traditional view, the banking system is neutral to regional development since it simply allocates scarce financial resources among regions; although sometimes it is also acknowledged that it might be not neutral when there existed some market failure which may isolate some regional credit markets. This paper instead argues that banks are never neutral from a regional point of view since they do not simply intermediate between savers and borrowers, but they are responsible to provide credit to let investment and output grow. More particularly, it is suggested that banks may influence regional development by producing a regional pattern of credit availability that is likely to be more unstable for some regions
Regional Studies, 2014
CROCCO M., FARIA-SILVA F., PAULO-REZENDE L. and RODRÍGUEZ-FUENTES C. J. Banks and regional develo... more CROCCO M., FARIA-SILVA F., PAULO-REZENDE L. and RODRÍGUEZ-FUENTES C. J. Banks and regional development: an empirical analysis on the determinants of credit availability in Brazilian regions, Regional Studies. This paper studies the influence that liquidity preference and bank lending strategies might have played in the determination of bank credit availability in Brazilian regions during the period 1999-2008. It puts forward the argument that in remoter and less developed regions, the liquidity preference of agents is higher and fluctuates along business cycles, reducing regional credit availability in downturns (due to both a contraction in supply and the demand for credit in remoter regions), and producing a more unstable pattern for credit availability alongside business cycles. Empirical evidence for the Brazilian regions during the period 1999-2008 is provided to support this view.
Regional Studies, 2003
RODRÍGUEZ-FUENTES C. J. and DOW S. C. (2003) EMU and the regional impact of monetary policy, Reg.... more RODRÍGUEZ-FUENTES C. J. and DOW S. C. (2003) EMU and the regional impact of monetary policy, Reg. Studies 37, 969-980. In this paper we focus on a topic which has been attracting renewed interest because of monetary unification in Europe: the regional dimension of national monetary policies. Most of the debate over the regional implications of the Euro has been developed within the Optimum Currency Area framework. According to this theory, European monetary policy would have regional effects when the countries of the Euro-zone had such structural differences as to produce asymmetric shocks. These asymmetrical effects could only be offset by labour mobility and wage/price flexibility. However, we argue here that, in addition, European monetary policy may have more general regional effects, including in particular by producing a higher instability in the pattern of credit availability for some peripheral regions. This latter possibility, and the forces underlying it, are explored here both at the theoretical level and the empirical level, examining the process by which monetary policy is transmitted.
Ekonomiaz, nº 84, 2013
Ekonomiaz N.º 84, 3 er cuatrimestre, 2013
The Caribbean Economies in an Era of Free Trade, 2017
Routledge eBooks, Oct 20, 2022
Papers in Regional Science, 2005
Rodriguez-Fuentes C. J. and Padron-Marrero D. Industry effects of monetary policy in Spain, Regio... more Rodriguez-Fuentes C. J. and Padron-Marrero D. Industry effects of monetary policy in Spain, Regional Studies. The aim of this paper is to analyse the presence of sectoral asymmetries in monetary policy transmission in Spain in the period before the introduction of the single monetary policy in Europe (1988-98). Monetary policy shocks are identified through both a standard vector auto-regression model
List of Figures List of Tables Acknowledgements 1. Introduction 2. A Dichotomised View of the Eco... more List of Figures List of Tables Acknowledgements 1. Introduction 2. A Dichotomised View of the Economic Process 3. Beyond Transmission Mechanisms 4. The Regional Effects of Monetary Policy. A Theoretical Framework 5. Monetary Policy, Financial Flows and Credit Markets. A Survey of the Regional Literature 6. Some Empirical Evidence 7. Conclusions Notes References Author Index Subject Index
The on-going banking crisis has demonstrated the significance of banking for economic growth. Whi... more The on-going banking crisis has demonstrated the significance of banking for economic growth. While banks as creators of money are important for the functioning of the economy, bank lending to productive enterprises is necessary for economic activity. Much of the international policy discussion supports the notion of reform of banking structure to allow banks to perform these two functions more effectively. On the one hand there is a discussion of separating traditional banking functions from those which exposed the system to excessive risk, i.e. separating ‘good’ banking from ‘bad’ banking. At the same time there has been discussion of the relative merits of large-scale banking concentrated in financial centres and smaller-scale local banking.
The aim of this paper is to analyze the theoretical limitations of the mainstream’s Works related... more The aim of this paper is to analyze the theoretical limitations of the mainstream’s Works related to the regional impacts of monetary policy. After a general presentation of the conventional framework, followed by the typology proposed in Dow & Rodriguez-Fuentes (1997), we present our arguments based on the Post-Keynesian theory against the traditional approach. In our view, the Post-Keynesian framework is the most appropriate for analyzing this type of dynamics. Its theoretical elements have the best explanation for the dynamics of the monetary policy at a regional level, once they take into account the role played by uncertainty and liquidity preference of economic agents and institutions, which are essential for the understanding the regional economics in a "center – periphery” context.
The primary goal of the European Central Bank’s (ECB) monetary policy is to achieve price stabil... more The primary goal of the European Central Bank’s (ECB) monetary policy is to achieve price stability. Whereas during the 1980s and 1990s there was a rapid and strong convergence in terms of price differential among the Euro countries, particularly in those countries with higher inflation rates in the past, single monetary policy has proved to be quite inefficient in continuing this trend and has not achieved further reductions in inflation rate differentials within the euro zone. Since the ECB sets the official interest rate according to the average inflation of the euro area, the persistence of such price differentials within the area would mean that the “one size interest rate policy” would not fit all. This paper studies empirically the inflation rate differentials and their persistence in some currency unions with the aim to draw some conclusions for the working of the ECB monetary policy. KEYWORDS: monetary policy; inflation persistence; currency unions
Brazilian Journal of Political Economy
This paper provides a theoretical account of the role of regional differences in cyclical pattern... more This paper provides a theoretical account of the role of regional differences in cyclical patterns of credit availability for patterns of regional convergence or divergence. While mainstream theories imply either equalising regional capital flows, or else lower credit availability for peripheral regions due to market imperfections, Post-Keynesian theory of liquidity preference and financial structure imply the scope for greater credit volatility for peripheral regions, especially in downturns, contributing to real economic divergence. This latter account is assessed by means of an empirical analysis of patterns in bank credit over the business cycle among the Spanish regions and Eurozone countries.
… Comercial Española, ICE: …, 2000
Resumen: La consideración de la literatura financiera regional resulta útil para el análisis de l... more Resumen: La consideración de la literatura financiera regional resulta útil para el análisis de la influencia que puede ejercer el sector financiero en el proceso de convergencia entre las economías de la Unión Europea que forman parte de la zona euro. En este trabajo se ...
Regional Studies, 2003
rodr??guez-fuentes CJ and dow SC (2003) EMU and the regional impact of monetary policy, Reg. Stud... more rodr??guez-fuentes CJ and dow SC (2003) EMU and the regional impact of monetary policy, Reg. Studies 37, 969???980. In this paper we focus on a topic which has been attracting renewed interest because of monetary unification in Europe: the regional dimension of ...
ERSA conference …, 1999
The purpose of this paper is to consider the implications of European monetary integration for pe... more The purpose of this paper is to consider the implications of European monetary integration for peripheral economies within Europe, with a particular focus on the experience of Spain. The view represented in the European Commission's own research is summarised as ...
Papers in Regional Science, 1998
To many economists financial factors play no role in regional development since they usually assu... more To many economists financial factors play no role in regional development since they usually assume that money can only affect the general level of prices but not the real output, that is, money is neutral to the economic process. According to this traditional view, the banking system is neutral to regional development since it simply allocates scarce financial resources among regions; although sometimes it is also acknowledged that it might be not neutral when there existed some market failure which may isolate some regional credit markets. This paper instead argues that banks are never neutral from a regional point of view since they do not simply intermediate between savers and borrowers, but they are responsible to provide credit to let investment and output grow. More particularly, it is suggested that banks may influence regional development by producing a regional pattern of credit availability that is likely to be more unstable for some regions
Regional Studies, 2014
CROCCO M., FARIA-SILVA F., PAULO-REZENDE L. and RODRÍGUEZ-FUENTES C. J. Banks and regional develo... more CROCCO M., FARIA-SILVA F., PAULO-REZENDE L. and RODRÍGUEZ-FUENTES C. J. Banks and regional development: an empirical analysis on the determinants of credit availability in Brazilian regions, Regional Studies. This paper studies the influence that liquidity preference and bank lending strategies might have played in the determination of bank credit availability in Brazilian regions during the period 1999-2008. It puts forward the argument that in remoter and less developed regions, the liquidity preference of agents is higher and fluctuates along business cycles, reducing regional credit availability in downturns (due to both a contraction in supply and the demand for credit in remoter regions), and producing a more unstable pattern for credit availability alongside business cycles. Empirical evidence for the Brazilian regions during the period 1999-2008 is provided to support this view.
Regional Studies, 2003
RODRÍGUEZ-FUENTES C. J. and DOW S. C. (2003) EMU and the regional impact of monetary policy, Reg.... more RODRÍGUEZ-FUENTES C. J. and DOW S. C. (2003) EMU and the regional impact of monetary policy, Reg. Studies 37, 969-980. In this paper we focus on a topic which has been attracting renewed interest because of monetary unification in Europe: the regional dimension of national monetary policies. Most of the debate over the regional implications of the Euro has been developed within the Optimum Currency Area framework. According to this theory, European monetary policy would have regional effects when the countries of the Euro-zone had such structural differences as to produce asymmetric shocks. These asymmetrical effects could only be offset by labour mobility and wage/price flexibility. However, we argue here that, in addition, European monetary policy may have more general regional effects, including in particular by producing a higher instability in the pattern of credit availability for some peripheral regions. This latter possibility, and the forces underlying it, are explored here both at the theoretical level and the empirical level, examining the process by which monetary policy is transmitted.
Ekonomiaz, nº 84, 2013
Ekonomiaz N.º 84, 3 er cuatrimestre, 2013