This paper uses a GVAR model to analyze the direct and indirect (via commodity prices and cross-country interactions) spillover effects of US monetary policy on foreign economies and the ensuing spillbacks to the US. A ten basis points cut in the US interest rate directly boosts an average...

I study spillovers of US monetary policy to the rest of the world, as well as spillbacks to the US economy in an empirical multi-country model over time. Within the multilateral framework, I distinguish the bilateral effect from the network effects that arise from interactions among recipient...