NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

US Monetary Policy and the Global Financial Cycle

Silvia Miranda-Agrippino, Hélène Rey

NBER Working Paper No. 21722
Issued in November 2015, Revised in March 2019
NBER Program(s):Asset Pricing, Corporate Finance, International Finance and Macroeconomics, Monetary Economics

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.

download in pdf format
   (948 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21722

Users who downloaded this paper also downloaded* these:
Rey w21162 Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence
Blanchard, Cerutti, and Summers w21726 Inflation and Activity – Two Explorations and their Monetary Policy Implications
Passari and Rey w21172 Financial Flows and the International Monetary System
Aizenman, Chinn, and Ito w21128 Monetary Policy Spillovers and the Trilemma in the New Normal: Periphery Country Sensitivity to Core Country Conditions
Kozlowski, Veldkamp, and Venkateswaran w21719 The Tail that Wags the Economy: Beliefs and Persistent Stagnation
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us