Monetary Policy in the Capitals of Capital / Elena Gerko, Hélène Rey.

Format:

Book

Author/Creator:

Gerko, Elena.

Contributor:

National Bureau of Economic Research.

Rey, Hélène.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23651.

NBER working paper series no. w23651

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

The importance of financial markets and international capital flows have increased greatly since the 1990s. How does this affect the effectiveness of monetary policy? We analyse the transmission of monetary policy in two important financial centres, the United States and the United Kingdom. Studying the responses of mortgage and corporate spreads we find evidence in favour of an important financial channel in both countries. Our identification strategy allows us to study movements in the policy rates and the effect of forward guidance, broadly defined. We also analyse international financial spillovers, which we find to be asymmetric.

Notes:

Print version record

August 2017.