We are pleased to invite you to the new online Brown Bag Seminar to be held on Thursday, February 24, 2022, at 2:00 p.m. The series of Brown Bag Seminars will be continued by Assist. Prof. Ozana Nadoveza, Ph.D. (Faculty of Economics & Business - Zagreb and Croatian National Bank), who will present the emerging paper entitled Regional Effects of Monetary Policy, co-authored by Mr. Davor Kunovac, M.Sc., and Mr. Karlo Kotarac, M.Sc.,(both of CNB).
A link to connect to the Brown Bag Seminar is available on the website www.efzg.unizg.hr/najava-brown-bag-seminara/42813
Summary of the presentation:
In this emerging paper, we investigate the effects (conventional and unconventional) of the ECB's monetary policy on the euro area's regional GDP and try to conclude whether a "one size fits all" policy, which cannot address the problems of heterogeneous regions, is appropriate for the 11 analyzed regions. euro area countries (original Member States other than Luxembourg). We are also indirectly trying to establish whether the ECB's policy has contributed to the growth of regional inequalities in the post-global financial crisis. To investigate the effects of monetary policy at the regional level, and the related adequacy of the common monetary policy in euro area regions, using GDP data of 165 NUTS 2 regions of the analyzed countries, euro area inflation, and ECB interest rates with FAVAR (Factor Augmented) Vector Autoregression) the model we analyze 1) the extent to which NUTS 2 regions are affected by common and symmetric shocks (optimal currency area theory) and 2) which are the dominant drivers of business cycles of individual NUTS 2 regions and how heterogeneous they are between and within countries relatively rich and relatively poor regions. From the preliminary results of the research, we conclude that within the euro area there are regions and countries where the common monetary policy is not optimal. However, it seems that the heterogeneity of the effects of monetary policy at the euro area level does not differ significantly from the heterogeneity of its effects within countries in most of the analyzed members of the European Monetary Union. Therefore, at this stage of the research, there are indications that in the analyzed countries the common monetary policy at the level of the European Monetary Union is as inappropriate as the (common) national monetary policy. In line with this conclusion, the roots and solutions to regional inequalities and divergence need to be sought outside the scope of the common monetary policy.
About the presenter:
Ms. Ozana Nadoveza, Ph.D., is an Assistant Professor at the Faculty of Economics & Business, Zagreb (Department of Macroeconomics and Economic Development) and an advisor at the Croatian National Bank (Modeling Directorate).
Description of the Brown Bag Seminar concept:
The Brown Bag Seminar (BBS) is an informal one-hour workshop with aim of presenting research in different stages of design (ideas, rounded theoretical framework, conducted empirical research, etc.), promoting discussion and creating a stimulating environment focused on the constructive discussion between exhibitors and the rest of participants of the seminar. The basic idea of the BBS is to create a platform where at least once a month, the FEB ZG employees will have the opportunity to present the ideas and articles they work on within their scientific research work. We invite you to respond and help with your constructive comments to exhibitors and expose by yourself the topics you are currently working on, unpublished works or present the research ideas you are thinking about.
The idea is that presentations (in English or Croatian - depending on the presenter's preference) last for 30-40 minutes, and is followed by a discussion.
On behalf of the organizers,
A link to connect to the Brown Bag Seminar is available on the website www.efzg.unizg.hr/najava-
Summary of the presentation:
In this emerging paper, we investigate the effects (conventional and unconventional) of the ECB's monetary policy on the euro area's regional GDP and try to conclude whether a "one size fits all" policy, which cannot address the problems of heterogeneous regions, is appropriate for the 11 analyzed regions. euro area countries (original Member States other than Luxembourg). We are also indirectly trying to establish whether the ECB's policy has contributed to the growth of regional inequalities in the post-global financial crisis. To investigate the effects of monetary policy at the regional level, and the related adequacy of the common monetary policy in euro area regions, using GDP data of 165 NUTS 2 regions of the analyzed countries, euro area inflation, and ECB interest rates with FAVAR (Factor Augmented) Vector Autoregression) the model we analyze 1) the extent to which NUTS 2 regions are affected by common and symmetric shocks (optimal currency area theory) and 2) which are the dominant drivers of business cycles of individual NUTS 2 regions and how heterogeneous they are between and within countries relatively rich and relatively poor regions. From the preliminary results of the research, we conclude that within the euro area there are regions and countries where the common monetary policy is not optimal. However, it seems that the heterogeneity of the effects of monetary policy at the euro area level does not differ significantly from the heterogeneity of its effects within countries in most of the analyzed members of the European Monetary Union. Therefore, at this stage of the research, there are indications that in the analyzed countries the common monetary policy at the level of the European Monetary Union is as inappropriate as the (common) national monetary policy. In line with this conclusion, the roots and solutions to regional inequalities and divergence need to be sought outside the scope of the common monetary policy.
About the presenter:
Ms. Ozana Nadoveza, Ph.D., is an Assistant Professor at the Faculty of Economics & Business, Zagreb (Department of Macroeconomics and Economic Development) and an advisor at the Croatian National Bank (Modeling Directorate).
Description of the Brown Bag Seminar concept:
The Brown Bag Seminar (BBS) is an informal one-hour workshop with aim of presenting research in different stages of design (ideas, rounded theoretical framework, conducted empirical research, etc.), promoting discussion and creating a stimulating environment focused on the constructive discussion between exhibitors and the rest of participants of the seminar. The basic idea of the BBS is to create a platform where at least once a month, the FEB ZG employees will have the opportunity to present the ideas and articles they work on within their scientific research work. We invite you to respond and help with your constructive comments to exhibitors and expose by yourself the topics you are currently working on, unpublished works or present the research ideas you are thinking about.
The idea is that presentations (in English or Croatian - depending on the presenter's preference) last for 30-40 minutes, and is followed by a discussion.
On behalf of the organizers,
Tomislav Globan, Ph.D.
Associate Professor
Department of Macroeconomics and Economic Development
University of Zagreb, Faculty of Economics & Business
Trg J. F. Kennedyja 6, 10000 Zagreb, Croatia