The issue of spillover effects from U.S. monetary policy is especially important in light of the possibility that interest rate normalization in the United States may proceed faster than expected. Even though current times are exceptional from a historical point of view, a look at how past U.S. monetary policy shocks have affected output in other countries may help us understand their potential effects and transmission channels. The approach here assesses how monthly movements in the U.S. policy rate (the federal funds rate) affect output and the short-term interest rates of a group of advanced economies and a group of emerging market and developing economies for which data are available.'
展开▼
