{
  "title": "U.S. Monetary Shocks and Global Stock Prices",
  "publication": "IMF Working Papers, December 1, 2010",
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  "summary": "This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening).",
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    {
      "heading": "Summary and main finding",
      "content": "- This paper studies how U.S. monetary policy affects global stock prices.\n- We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening).\n- These findings suggest that financial frictions play an important role in the transmission of monetary policy, and that U.S. monetary policy influences global capital allocation."
    },
    {
      "heading": "Heterogeneity and channels",
      "content": "- Impact is more pronounced for sectors that depend on external financing.\n- Impact is more pronounced for countries that are more integrated with the global financial market.\n- These patterns imply a role for financial frictions in the cross-border transmission of U.S. monetary policy."
    },
    {
      "heading": "Policy implications",
      "content": "- U.S. monetary policy has significant spillovers to global stock prices and capital allocation.\n- Consideration of sectoral dependence on external financing and country financial integration is important when assessing vulnerability to U.S. monetary shocks.\n\n---\n\n Content in this bundle\n\n- wp10278 — References\n  - wp10278 — References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp10278 — References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/u-s-24435"
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    "Authors: Luc Laeven, Hui Tong",
    "Published: December 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455210855.001",
    "This paper studies how U.S. monetary policy affects global stock prices.",
    "We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening).",
    "These findings suggest that financial frictions play an important role in the transmission of monetary policy, and that U.S. monetary policy influences global capital allocation.",
    "Impact is more pronounced for sectors that depend on external financing.",
    "Impact is more pronounced for countries that are more integrated with the global financial market.",
    "These patterns imply a role for financial frictions in the cross-border transmission of U.S. monetary policy.",
    "U.S. monetary policy has significant spillovers to global stock prices and capital allocation.",
    "Consideration of sectoral dependence on external financing and country financial integration is important when assessing vulnerability to U.S. monetary shocks.",
    "**_wp10278 — References**"
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