The Effects of Monetary Policy on the Fifteen Major Metropolitan Statistical Areas in Texas
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As the Eurozone continues to deal with their crisis, the similarities of the causes of the crisis with the United States’ economy become more apparent. Monetary Policy is implemented by the Federal Reserve, a single central bank, by targeting the federal funds rate. Shocks in monetary policy implemented by the Fed causes responses in unemployment rates in MSAs across the country. Included in these MSAs are fifteen metropolitan areas in Texas. An analysis and correlation of the unemployment rates of these MSAs will be constructed in comparison to the United States using vector auto regression and impulse responses. Implications will then be presented to combat the disparities present between the economies.