+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






Finance and Credit

Reducing the asymmetry of monetary policy effects at the regional level: A review of foreign and Russian literature for 1997–2021

Vol. 28, Iss. 10, OCTOBER 2022

Received: 1 August 2022

Received in revised form: 25 August 2022

Accepted: 8 September 2022

Available online: 27 October 2022


JEL Classification: Е32, E58, E65

Pages: 2338–2365


Alena S. NELYUBINA Lomonosov Moscow State University (Lomonosov MSU), Moscow, Russian Federation

ORCID id: not available

Subject. This article examines the asymmetry of the effects of monetary policy at the regional level, described in foreign and Russian scientific publications for the period from 1997 to 2021.
Objectives. The article aims to develop recommendations for economic regulators that can contribute to reducing the asymmetry of the effects of monetary policy at the regional level.
Methods. For the study, I used the methods of economic analysis, comparison, expert assessment, content analysis, scientific skepticism, and analogy.
Results. The article presents the author-developed recommendations for monetary and fiscal policies, as well as additional measures that can help reduce the asymmetry of regional reactions.
Conclusions. The analyzed publications and the author's own research show that ignoring the asymmetry of the effects of monetary policy at the regional level can cause losses in the well-being of economic agents. To enhance the efficiency of spending regional budgets, measures to create investment attractiveness of the regions are required. It is necessary to create projects aimed at developing logistics infrastructure between regions and increasing the mobility of labor, including highly qualified one.

Keywords: monetary policy, heterogeneity of regions, transmission channels, economic policy


  1. Cristadoro R., Saporito G., Venditti F. Forecasting Inflation and Tracking Monetary Policy in the Euro Area: Does National Information Help? Empirical Economics, 2013, vol. 44, pp. 1065–1086. URL: Link
  2. Capolongo A., Pacella С. Forecasting Inflation in the Euro Area: Countries Matter! Empirical Economics, 2021, vol. 61, pp. 2477–2499. URL: Link
  3. Bräuning C., Fendel R. National Information and Euro Area Monetary Policy: A Generalized Ordered Choice Approach. Empirical Economics, 2018, vol. 54, pp. 501–522. URL: Link
  4. Jondeau E., Sahuc J.-G. Optimal Monetary Policy in an Estimated DSGE Model of the Euro Area with Cross-Country Heterogeneity. International Journal of Central Banking, 2008, vol. 4, no. 2, pp. 23–72. URL: Link
  5. Bouvet F., King S. Do National Economic Shocks Influence European Central Bank Interest Rate Decisions? The Impact of the Financial and Sovereign Debt Crises. Journal of Common Market Studies, 2013, vol. 51, iss. 2, pp. 212–231. URL: Link
  6. Brissimis S.N., Skotida I. Optimal Monetary Policy in the Euro Area in the Presence of Heterogeneity. Journal of International Money and Finance, 2008, vol. 27, iss. 2, pp. 209–226. URL: Link
  7. Zhemkov M.I. [Regional effects of inflation targeting in Russia: Factors of heterogeneity and structural inflation rates]. Voprosy Ekonomiki, 2019, no. 9, pp. 70–89. (In Russ.) URL: Link
  8. Alagidede P., Coleman S., Cuestas J.C. Inflationary Shocks and Common Economic Trends: Implications for West African Monetary Union Membership. Journal of Policy Modeling, 2012, vol. 34, iss. 3, pp. 460–475. URL: Link
  9. Bragoli D., Rigon M., Zanetti F. Optimal Inflation Weights in the Euro Area. International Journal of Central Banking, 2016, vol. 12, no. 2, pp. 357–383. URL: Link
  10. Aoki K. Optimal Monetary Policy Responses to Relative-Price Changes. Journal of Monetary Economics, 2001, vol. 48, iss. 1, pp. 55–80. URL: Link00069-1
  11. Benigno P. Optimal Monetary Policy in a Currency Area. Journal of International Economy, 2004, vol. 63, iss. 2, pp. 293–320. URL: Link00055-2
  12. Angelini P., Del Giovane P., Siviero S., Terlizzese D. Monetary Policy in a Monetary Union: What Role for Regional Information? International Journal of Central Banking, 2008, vol. 4, no. 3, pp. 1–28. URL: Link
  13. Lee J. Evaluating Monetary Policy of the Euro Area with Cross-Country Heterogeneity: Evidence from a New Keynesian Model. Economic Systems, 2009, vol. 33, iss. 4, pp. 325–343. URL: Link
  14. Benigno P., Lopez-Salido J.D. Inflation Persistence and Optimal Monetary Policy in the Euro Area. Journal of Money, Credit and Banking, 2006, vol. 38, no. 3, pp. 587–614. URL: Link
  15. Meade E.E., Sheets D.N. Regional Influences on FOMC Voting Patterns. Journal of Money, Credit and Banking, 2005, vol. 37, no. 4, pp. 661–677. URL: Link
  16. Hayo B., Méon P.-G. Behind Closed Doors: Revealing the ECB's Decision Rule. Journal of International Money and Finance, 2013, vol. 37, pp. 135–160. URL: Link
  17. Nelyubina A. [Forecasting regional indicators based on the quarterly projection model]. Den'gi i kredit = Russian Journal of Money and Finance, 2021, vol. 80, no. 2, pp. 50–75. (In Russ.) URL: Link
  18. Farhi E., Werning I. Chapter 31 – Fiscal Multipliers: Liquidity Traps and Currency Unions. Handbook of Macroeconomics, 2016, vol. 2, pp. 2417–2492. URL: Link
  19. Gali J., Monacelli T. Optimal Monetary and Fiscal Policy in a Currency Union. Journal of International Economics, 2008, vol. 76, iss. 1, pp. 116–132. URL: Link
  20. Erceg C.J., Lindé J. Asymmetric Shocks in a Currency Union with Monetary and Fiscal Handcuffs. International Finance Discussion Papers (IFDP), 2010, no. 1012, 58 p. URL: Link
  21. Duarte M., Wolman A.L. Fiscal Policy and Regional Inflation in a Currency Union. Journal of International Economics, 2008, vol. 74, iss. 2, pp. 384–401. URL: Link
  22. Acconcia A., Corsetti G., Simonelli S. Mafia and Public Spending: Evidence on the Fiscal Multiplier from a Quasi-Experiment. The American Economic Review, 2014, vol. 104, no. 7, pp. 2185–2209. URL: Link
  23. Pappa E. The Unbearable Tightness of Being in a Monetary Union: Fiscal Restrictions and Regional Stability: A Monograph. IGIER Working Paper, 2004, no. 294, 25 p. URL: Link
  24. Kletzer K., von Hagen J. Chapter 2 – Monetary Union and Fiscal Federalism. In: Ch. Wyplosz (ed.), The Impact of EMU on Europe and the Developing Countries. Cambridge University Press, 2001, pp. 17–39. URL: Link
  25. Dmitriev M., Hoddenbagh J. Optimal Fiscal Transfers in a Monetary Union. Journal of International Economics, 2019, vol. 117, pp. 91–108. URL: Link
  26. Evers M.P. Federal Fiscal Transfer Rules in Monetary Unions. European Economic Review, 2012, vol. 56, iss. 3, pp. 507–525. URL: Link
  27. Poniatowski G. Fiscal Federalism in the EMU. Journal of Management and Financial Sciences, 2015, vol. 22, iss. 4, pp. 21–32.
  28. Verstegen L., Meijdam A.C. The Effectiveness of a Fiscal Transfer Mechanism in a Monetary Union: A DSGE Model for the Euro Area. CentER Discussion Paper Series, 2016, vol. 2016-023, 79 p. URL: Link
  29. Yushkov A. Fiscal Decentralization and Regional Economic Growth: Theory, Empirics, and the Russian Experience. Russian Journal of Economics, 2015, vol. 1(4), pp. 404–418. URL: Link
  30. Bozhechkova A.V., Mamedov A.A., Sinel'nikov-Murylev S.G., Turuntseva M.Yu. [Stabilization properties of federal fiscal transfers to Russian regions]. Zhurnal Novoi ekonomicheskoi assotsiatsii = Journal of the New Economic Association, 2018, no. 4, pp. 61–83. (In Russ.) URL: Link
  31. Khramchenko A.A., Terzeman O.I., Danilov I.V. [Current problems in the sphere of budget policy of the Russian Federation]. Vestnik Akademii znanii = Bulletin of the Academy of Knowledge, 2021, no. 45, pp. 427–432. (In Russ.) URL: Link
  32. Eller M., Fidrmuc J., Fungáčová Z. Fiscal Policy and Regional Output Volatility: Evidence from Russia. Regional Studies, 2016, vol. 50, iss. 11, pp. 1849–1862. URL: Link
  33. Kirillov A.M. [Spatial analysis of food inflation in Russian regions]. Prostranstvennaya ekonomika = Spatial Economics, 2017, no. 4, pp. 41–58. (In Russ.) URL: Link
  34. Perevyshin Yu.N., Sinel'nikov-Murylev S.G., Trunin P.V. [Determinants of price differentiation across Russian regions]. Ekonomicheskii zhurnal VShE = HSE Economic Journal, 2017, vol. 21, no. 3, pp. 361–384. (In Russ.) URL: Link
  35. Babanov A.V. [The classification of factors forming regional investment attractiveness]. Ekonomicheskii zhurnal = Economic Journal, 2012, no. 4, pp. 88–95. URL: Link (In Russ.)
  36. Sabirov O.Sh. [On the methodology of assessing the investment attractiveness of regions]. Arkhiv nauchnykh issledovanii, 2020, vol. 17, no. 1. (In Russ.) URL: Link

View all articles of issue


ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 28, Iss. 11
November 2022