Discussion Paper

International Spillovers of Monetary Policy


Abstract: This note presents a broad-brush overview of some of the salient issues on this topic and provides our sense of the answers to some key questions. We start by sketching out a simple framework for understanding how monetary policy actions spill over to other economies. The note then describes some back-of-the-envelope estimates of how U.S. monetary policy actions are transmitted overseas that we corroborate using a large-scale policy model (SIGMA). Finally, we discuss the implications of monetary policy spillovers for global economic stability, including the challenges posed by those spillovers for some countries with multiple policy objectives.

https://doi.org/10.17016/2573-2129.15

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: IFDP Notes

Publication Date: 2016-02-08

Number: 2016-02-08-1

Note: PowerPoint Presentation: https://www.federalreserve.gov/econresdata/notes/ifdp-notes/2016/files/kamin-presentation-201603.pdf