“International spillovers of monetary policy through global banks”

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.

  1. International spillovers of monetary policy through global banks: introduction to the special issue

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  2. Cross-border spillovers of monetary policy: What changes during a financial crisis?

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    The international transmission of monetary policy through financial centres: Evidence from the United Kingdom and Hong Kong

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    The international transmission of monetary policy

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  3. International monetary policy transmission through banks in small open economies

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  4. International spillovers of monetary policy: Lessons from Chile, Korea, and Poland

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  5. Financial institutions’ business models and the global transmission of monetary policy

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  6. International spillovers of monetary policy: Evidence from France and Italy

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  7. International monetary policy spillovers through the bank funding channel

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  8. Transmission of monetary policy through global banks: Whose policy matters?

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  9. The portfolio of euro area fund investors and ECB monetary policy announcements

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6 thoughts on ““International spillovers of monetary policy through global banks”

  1. Barkley Rosser


    Congratulations on what looks to be a well put-together special issue that covers the topic well.

    1. Menzie Chinn Post author

      Barkley Rosser: Many thanks – I really did little of the work organizing the conference. That task was largely accomplished by the other coeditors, particularly Linda Goldberg and Claudia Buch.

  2. Moses Herzog

    I keep wanting to link to Jimmy Dore videos these are so good. But I don’t want to kind of drag this site down with the vulgarity. But if you want some good laughs, just check out the June 8, 2019 one they do on Neera Tanden. She’s such a supreme hypocrite, and she talks like one of those “mean girls” you knew back in junior high school. It’s like she never grew out of it. These people really are the lowest of the low, and when you consider Hillary was listening to people like her (not that Hillary would have done it any better on her own) it’s really not any kind of a mystery how she got clobbered in the electoral college.

  3. spencer

    In my bond valuation model I have the average of the British, German and Japanese ten year bonds as one of the variables.
    Interestingly, it has a greater weight in the equation than fed funds.
    Just another reason why the Fed can not control bond yields.

    In an open economy with a current account deficit the equilibrium or market clearing interest rate is the
    the rate that attracts sufficient foreign capital to finance the deficit with a stable exchange rate.
    If the currency is rising the domestic bond yield is probably too high and if the currency is weak rates are two low.

    Of course there is always the possibility that a strong/weak currency is the desired outcome.

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