This paper analyzes the spillovers of higher U.S. interest rates on economic activity in a large panel of 50 advanced and emerging economies. We allow the response of GDP in each country to vary according to its exchange rate regime, trade openness, and a vulnerability index that includes...

This study analyzes the international transmission of US interest rate hikes using the factor-augmented autoregression model. To achieve this purpose, this study first identifies the shocks that result from the US interest rate policies and analyzes how these shocks impact the outputs and prices...

Preface -- The background : channels of contagion in the us financial crisis1 -- Methodology -- The data -- Estimates of single-state var models -- Results from markov switching models -- Estimating and disentangling the contagion channels -- Comparing the us and european contagion experiences...