This paper revisits the definition of monetary policy autonomy and develops a new method to identify autonomy regimes for a set of countries. Compared to the traditional identification approach, which only focuses on correlations among domestic and foreign interest rates, monetary policy...

In recent decades, there has been a rising share of countries with limited exchange rate flexibility (Ilzetzki et al., 2019), and foreign exchange (FX) intervention is commonly used among emerging market economies. Yet, the positive and normative implications of central banks' FX intervention...

As global financial integration deepens, shocks from a local market can generate global spillover effects more easily. Historical episodes, such as the 2008 financial crisis and the COVID-19 pandemic show that the connectedness of financial markets is closely related to global systemic risks....

The world interest rate is a key determinant of borrowing and lending behavior and plays a central role in most open-economy macro/finance models. This paper uses a dynamic factor model to construct a world interest rate based on short run interest rates of over 70 countries. Such a process...