The internationalisation of monetary policy

Cœuré, Benoît

doi:10.1016/j.jimonfin.2015.06.007

Cited by 13 publications

(8 citation statements)

References 8 publications

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“…While we do not explore the root causes for these trade-offs, we infer that these could be related to greater frictions in emerging economies and limitations in their policy toolkits. This suggests that there may be gains from international monetary policy coordination between major advanced and emerging economies, but practical obstacles undermine the case for coordination (Coeuré, 2016).…”

Section: Introductionmentioning

confidence: 99%

Monetary Policy and its Transmission in a Globalised World

et al. 2020

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Section: Introductionmentioning

confidence: 99%

Monetary Policy and its Transmission in a Globalised World

et al. 2020

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“…The issue of monetary policy spillovers can be traced as far back as to the 18th century in David Hume's Essays, Moral, Political, and Literary (Coeuré, 2016). Theoretical models have rigorously analyzed the international spillovers of monetary policy, and reviewed the case for and against monetary policy coordination since the mid-1980s (see Taylor, 2013, for a detailed review of this literature).…”

Section: Introductionmentioning

confidence: 99%

International monetary policy spillovers: Evidence from a time-varying parameter vector autoregression

Antonakakis

Gabauer

Gupta

2019

International Review of Financial Analysis

111

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“…Most studies find that the effective scope for policy coordination is limited, although it has been argued that in exceptional circumstances, such as the global financial crisis, the potential gains from coordination can be large [e.g. Coeuré (2016)].…”

Section: Introductionmentioning

confidence: 99%

Measuring the effects of dollar appreciation on Asia: A FAVAR approach

Liu

Spiegel

Tai

2017

Journal of International Money and Finance

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Exchange rate shocks have mixed effects on economic activity in both theory and empirical VAR models. In this paper, we extend the empirical literature by considering the implications of a positive shock to the U.S. dollar in a factor-augmented vector autoregression (FAVAR) model for the U.S. and three large Asian economies: Korea, Japan and China. The FAVAR framework allows us to represent a country's aggregate economic activity by a latent factor, generated from a broad set of underlying observable economic indicators. To control for global conditions, we also include in the FAVAR a "global conditions index," which is another latent factor generated from the economic indicators of major trading partners. We find that a dollar appreciation shock reduces economic activity and inflation not only for the U.S. economy, but also for all three Asian economies. This result, which is robust to a number of alternative specifications, suggests that in spite of their disparate economic structures and policy regimes, the dollar appreciation shock affects the Asian economies primarily through its impact on U.S. aggregate demand; and this demand channel dominates the expenditure-switching channel that affects a country's export competitiveness.

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The internationalisation of monetary policy

Cited by 13 publications

References 8 publications

Monetary Policy and its Transmission in a Globalised World

Monetary Policy and its Transmission in a Globalised World

International monetary policy spillovers: Evidence from a time-varying parameter vector autoregression

Measuring the effects of dollar appreciation on Asia: A FAVAR approach

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