Spillovers from United States Monetary Policy on Emerging Markets: Different this Time?
By Jiaqian Chen, Tommaso Mancini Griffoli, Ratna Sahay. Social Science Research Network, 2014
151 citations recorded by the source corpus.
The impact of monetary policy in large advanced countries on emerging market economies — dubbed spillovers — is hotly debated in global and national policy circles. When the U.S. resorted to unconventional monetary policy, spillovers on asset prices and capital flows were significant, though remained smaller in countries with better fundamentals. This was not because monetary policy shocks changed (in size, sign or impact on stance). In fact, the traditional signaling channel of monetary policy continued to play the leading role in transmitting shocks, relative to other channels, affecting longer-term bond yields. Instead, we find that larger spillovers stem more from structural factors, such as the use of new instruments (asset purchases). We obtain these results by developing a new methodology to extract, separate, and interpret U.S. monetary policy shocks.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/0a7b9cfdfcd42a28ef0035c3081fd6b30578760d
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In Economics and Econometrics
- Ben S. Bernanke
- Serena Ng
- Jushan Bai
- Jean Boivin
- Sebnem Kalemli‐ozcan
- Jonathan H. Wright
- L. Reichlin
- Domenico Giannone
In Finance
Citations in the corpus
- Federal Reserve Policy in an International Context (2017, background): “For example, Chen, Mancini-Griffoli, and Sahay (2014) find that unconventional monetary policy had relatively stronger effects, while Bowman, Londono, and Sapriza (2014) and Rogers, Scotti, and Wright (2014) don’t find a significant difference between the effects of conventional and unconventional…”