That’s the title of a new special issue of the Journal of International Money and Finance, co-edited by Claudia Buch, Matthieu Bussière, Menzie Chinn, Linda Goldberg, Robert Hills, drawing on proceedings from an International Banking Research Network conference. From the introductory paper:
International spillovers of monetary policy have been core topics of theoretical and applied work in recent years, and thesubject of intense discussions in policy circles. Recent literature has improved our knowledge of international policy trans-mission, for instance: by investigating the role of global liquidity conditions; by analyzing international bond price orexchange rate responses to monetary policy decisions using very high frequency data and identification of monetary shocks;and by assessing countries’ monetary policy autonomy by examining the interest rate co-movements with base country pol-icy instruments. Still, gaps in this literature persist. In particular, most of the literature has focused on macroeconomic chan-nels, whereas comparatively less attention has been paid to transmission via banks, which may vary depending on individual banks’ characteristics and the features of national banking systems.
Against this background, the International Banking Research Network (IBRN) launched a project aimed at closing some ofthese gaps, drawing on a unique network of researchers and data. Country teams compiled individual bank-level data for theperiod from 2000 through 2015, usually based on confidential data proprietary to central banks, and then analyzed thosedata using a common empirical method. Small groups of country teams collaborated on papers to bring out instructive com-parisons and contrasts about the way in which monetary policy can have effects across borders via banks.