We quantify the role of global production linkages in explaining spillovers of U.S. monetarypolicy shocks to stock returns across countries and sectors using a newly constructed dataset.Our estimation strategy is based on a standard open-economy production network model thatdelivers a spillover...

Monetary policy shocks have a large impact on stock prices during narrow time windows centered around press releases by the FOMC. We use spatial autoregressions to decompose the overall effect of monetary policy shocks into a direct effect and a network effect. We attribute 50 to 85 percent of...

Monetary policy shocks have a large impact on aggregate stock market returns in narrow event windows around press releases by the Federal Open Market Committee. We use spatial autoregressions to decompose the overall effect of monetary policy shocks into a direct (demand) effect and an indirect...