The Macroeconomics Seminar:
Time: 12:15 pm – 13:30 pm
Date: 29th of November  2021

Room : 1003

Giovanni RICCO (University of Warwick), “The Global Transmission of U.S. Monetary Policy”

Abstract : “We quantify global US monetary policy spillovers by employing a high-frequency identification and big data techniques, in conjunction with a large harmonised dataset covering 30 economies. We report three novel stylised facts. First, a US monetary policy tightening has large contractionary effects onto both advanced and emerging economies. Second, flexible exchange rates cannot fully insulate domestic economies, due to movements in risk premia that limit central banks’ ability to control the yield curve. Third, financial channels dominate over demand and exchange rate channels in the transmission to real variables, while the transmission via oil and commodity prices determines nominal spillovers.”

Joint work : Riccardo Degasperi (University of Warwick) and Simon Seokki Hong (University of Warwick)

Organizers:
Alessandro RIBONI (Polytechnique-CREST)

Sponsors:
CREST