Spillover Implications of Differences in Monetary Conditions in the United States and the Euro Area

Author/Editor:

Carolina Osorio Buitron ; Esteban Vesperoni

Publication Date:

July 23, 2015

Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This report analyzes the possible spillover effects that could result if the U.S. normalizes its monetary policy while euro area countries are increasing monetary stimulus (a situation referred to as asynchronous monetary conditions). This analysis identifies country-specific shocks to economic activity and monetary conditions since the early 1990s, finding that real and monetary conditions in the United States and the euro area have oftentimes been asynchronous and have often resulted in significant spillover effects, particularly since early 2014.

Series:

Policy Discussion Paper No. 15/01

Subject:

Notes:

See also 2015 Spillover Report and Spillovers from Dollar Appreciation

English

Publication Date:

July 23, 2015

ISBN/ISSN:

9781513551708/1934-7456

Stock No:

PPIEA2015002

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

33

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