In this Global VEC study, we assess major economies' global influence through forecast error variance decomposition of real output growth. We find that the US has the greatest impact on an average foreign economy (9.8%), primarily via equity markets and interest rates. It is followed by the Euro...

In this Global VEC study, we assess major economies' global influence through forecast error variance decomposition of real output growth. We find that the US has the greatest impact on an average foreign economy (9.8%), primarily via equity markets and interest rates. It is followed by the Euro...

This study employs a GVEC model to analyze the global influences of US and China's monetary policies. It reveals that a 25 basis point US policy hike prompts a -0.18 ppt change in foreign economies, predominantly indirectly via commodity price fluctuations and cross-country interactions....

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...