U.S. Monetary Policy and the Global Financial Cycle

Silvia Miranda-Agrippino ^[2] ; Hélène Rey ^[1]
1. [1] London Business School
  
  London Business School
  
  Reino Unido
2. [2] Bank of England
Localización: Review of economic studies, ISSN 0034-6527, Vol. 87, Nº 6, 2020, págs. 2754-2776
Idioma: inglés
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Resumen
- U.S. monetary policy shocks induce comovements in the international financial variables that characterize the “Global Financial Cycle.” A single global factor that explains an important share of the variation of risky asset prices around the world decreases significantly after a U.S. monetary tightening. Monetary contractions in the US lead 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.