Global footprints of monetary policy

Subject

Economics

Publishing details

Centre for Macroeconomics

Authors / Editors

Miranda-Agrippino S; Nenova T; Rey H

Biographies

Publication Year

2020

Abstract

We study the international transmission of the monetary policy of the two world's giants: China and the US. From East to West, the channels of global transmission differ markedly. US monetary policy shocks affect the global economy primarily through their effects on integrated financial markets, global asset prices, and capital ows. EMEs in particular see both a reduction in in ows and a surge in out ows when the market tide turns as a result of a US monetary contraction. Conversely, international trade, commodity prices and global value chains are the main channels through which Chinese monetary policy transmits worldwide. AEs with a strong manufacturing sector are particularly sensitive to these disturbances.

Series Number

2004

Series

Centre for Macroeconomics