Global Footprints of Monetary Policy

Silvia Miranda-Agrippino, Tsvetelina Nenova () and Helene Rey

No 2004, Discussion Papers from Centre for Macroeconomics (CFM)

Abstract: We study the international transmission of the monetary policy of the two world's giants: China and the US. From East to West, the channels of global transmission differ markedly. US monetary policy shocks affect the global economy primarily through their effects on integrated financial markets, global asset prices, and capital ows. EMEs in particular see both a reduction in in ows and a surge in out ows when the market tide turns as a result of a US monetary contraction. Conversely, international trade, commodity prices and global value chains are the main channels through which Chinese monetary policy transmits worldwide. AEs with a strong manufacturing sector are particularly sensitive to these disturbances.

Keywords: Monetary policy; Global financial cycle; International pillovers; US; China (search for similar items in EconPapers)
JEL-codes: E44 E52 F33 F42 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2020-01
New Economics Papers: this item is included in nep-cba, nep-cna, nep-ifn, nep-mac, nep-mon and nep-opm
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Citations: View citations in EconPapers (29)

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