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:: year 8, Issue 25 (autumn 2015) ::
JMBR 2015, 8(25): 355-378 Back to browse issues page
Analysis of Countries Short-term Interest Rates Responses to U.S. Monetary Policy Shock
Mahrad Sharifvaghefi * 1, Mahdi Barakchian
Abstract:   (2386 Views)

There have been numerous papers worked on the effect of U.S. monetary policy on other countries macroeconomic variables. However, few papers focus on foreign countries monetary policy reactions to U.S. monetary policy. The main purpose of this paper is to find out how foreign countries policy makers react to U.S. monetary policy. In order to answer this question, we examine the effect of exogenous U.S. monetary policy shock on other countries’ short term interest rates. The second part of the paper tries to find that which factors can explain the differences in countries’ monetary policy reactions. Our results show that monetary policy independence, financial openness, central bank independence, and U.S. trade share of countries GDP can explain countries different reactions to U.S. monetary policy.

Full-Text [PDF 740 kb]   (1751 Downloads)    
Type of Study: Empirical Study | Subject: Monetary Policy, Central Banking, and the Supply of Money and Credit (E5)
Received: 2014/10/31 | Accepted: 2016/09/21 | Published: 2016/09/21
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Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
year 8, Issue 25 (autumn 2015) Back to browse issues page
فصلنامه پژوهش‌های پولی-بانکی Journal of Monetary & Banking Research
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