TY  - JOUR
AU  - Frankel,Jeffrey A.
AU  - Schmukler,Sergio L.
AU  - Serven,Luis
TI  - Global Transmission of Interest Rates: Monetary Independence and Currency Regime
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8828
PY  - 2002
Y2  - March 2002
UR  - http://www.nber.org/papers/w8828
L1  - http://www.nber.org/papers/w8828.pdf
N1  - Author contact info:
Jeffrey A. Frankel
Kennedy School of Government
Harvard University
79 JFK Street
Cambridge, MA 02138
Tel: 617/496-3834
Fax: 617/496-5747
E-Mail: jeffrey_frankel@harvard.edu

Sergio Schmukler
The World Bank
MSN MC3-301
1818 H Street, N.W.
Washington, DC 20433
Tel: 202-458-4167
Fax: 202-522-3518
E-Mail: Sschmukler@worldbank.org
M1  - published as Frankel, Jeffrey, Sergio L. Schmukler and Luis Serven. "Global Transmission Of Interest Rates: Monetary Independence And Currency Regime," Journal of International Money and Finance, 2004, v23(5,Sep), 701-733.
AB  - Using a large sample of developing and industrialized economies during 1970-1999, this paper explores whether the choice of exchange rate regime affects the sensitivity of local interest rates to international interest rates.  In most cases, we cannot reject full transmission of international interest rates in the long run, even for countries with floating regimes.  Only large industrial countries can benefit, or choose to benefit, from independent monetary policy.  However, short-run effects differ across regimes.  Dynamic estimates show that interest rates of countries with more flexible regimes adjust more slowly to changes in international rates.
ER  -