Has globalization changed the international transmission of U.S. monetary policy?
Böck M, Mori L (2025)
Publication Type: Journal article, Original article
Publication year: 2025
Journal
Book Volume: 157
Pages Range: 1-17
Article Number: 104139
URI: https://www.sciencedirect.com/science/article/pii/S0022199625000960
DOI: 10.1016/j.jinteco.2025.104139
Open Access Link: https://doi.org/10.1016/j.jinteco.2025.104139
Abstract
We estimate a time-varying parameter vector autoregression to examine the evolution of international spillovers of U.S. monetary policy in light of increasing globalization in real and financial markets. We find that the adverse international effects of a U.S. tightening have substantially increased over the past three decades, peaking during the Great Recession before stabilizing – a timing that aligns well with observed trends in globalization and slowbalization dynamics. Cross-country analysis and counterfactual simulations suggest that the estimated amplification of the spillover effects over time has been primarily driven by the surge in trade integration, while rising financial integration has contributed only modestly.
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APA:
Böck, M., & Mori, L. (2025). Has globalization changed the international transmission of U.S. monetary policy? Journal of International Economics, 157, 1-17. https://doi.org/10.1016/j.jinteco.2025.104139
MLA:
Böck, Maximilian, and Lorenzo Mori. "Has globalization changed the international transmission of U.S. monetary policy?" Journal of International Economics 157 (2025): 1-17.
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