- 2 May 2017
- WORKING PAPER SERIES - No. 2050Details
- This paper studies the international spillovers of US monetary policy shocks on a number of macroeconomic and financial variables in 36 advanced and emerging economies. In most countries, a surprise US monetary tightening leads to depreciation against the dollar; industrial production and real GDP fall, unemployment rises. Inﬂation declines especially in advanced economies. At the same time, there is signiﬁcant heterogeneity across countries in the response of asset prices, and portfolio and banking cross-border ﬂows. However, no clear-cut systematic relation emerges between country responses and likely relevant country characteristics, such as their income level, dollar exchange rate ﬂexibility, ﬁnancial openness, trade openness vs. the US, dollar exposure in foreign assets and liabilities, and incidence of commodity exports.
- JEL Code
- F3 : International Economics→International Finance
F4 : International Economics→Macroeconomic Aspects of International Trade and Finance