Work

US Monetary Policy and the Global Financial Cycle

Year: 2015

Type: report

Abstract: US monetary policy shocks induce comovements in the international financial variables that characterize the "Global Financial Cycle."One global factor explaining an important share of the variation of risky asset prices around the world decreases significantly after a US monetary contraction.Monetary tightening in the US leads to significant deleveraging of global financial intermediaries, a decline in the provision of domestic credit globally, strong retrenchments of international credit flows, and tightening of foreign financial conditions.Countries with floating exchange rate regimes are subject to similar financial spillovers.

Source: National Bureau of Economic Research

DOI: 10.3386/w21722

Authors: Silvia Miranda-Agrippino, Hélène Rey

Institutions: Northwestern University, National Bureau of Economic Research, Harvard University, London Business School

Language: English

Topic: Global Financial Crisis and Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funder: H2020 European Research Council

Award: International Finance and Monetary Policy

OpenAlex ID: W2787075150

Cites: 115

Cited by: 491

Related to: 10