Bräuning, Falk; Sheremirov, Viacheslav - 2019 - This version: October, 2019
We estimate that U.S. monetary policy has sizable spillover effects on global economic activity. In response to a surprise increase in the federal funds rate of 25 basis points, real output in our sample of 44 countries declines on average by 0.9% after three years. We find that international...