The role of international financial integration in monetary policy transmission / by Jing Cynthia Wu, Yinxi Xie and Ji Zhang.: FB3-5/2024-3E-PDF
"Motivated by empirical evidence, we propose an open-economy New Keynesian model with financial integration that allows financial intermediaries to hold foreign long-term bonds. We find financial integration features an amplification for a domestic monetary policy shock and a negative spillover for a foreign shock. These results hold for conventional and unconventional monetary policies. Among various aspects of financial integration, the bond duration plays a major role, and our results cannot be replicated by a standard model of perfect risk sharing between households. Finally, we observe an important interaction between financial integration and trade openness and demonstrate trade alone does not have an economically meaningful impact on monetary policy transmission"--Abstract, page ii.
Permanent link to this Catalogue record:
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| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | The role of international financial integration in monetary policy transmission / by Jing Cynthia Wu, Yinxi Xie and Ji Zhang. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-3 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | ISSN assigned to different series. "Category/Catégorie: Non-Sensitive/Non-Délicat." "Last updated: February 6, 2024." Includes bibliographical references (pages 40-44). Includes abstracts in English and French. |
| Publishing information | [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 |
| Author / Contributor | Wu, Jing Cynthia, author. |
| Description | 1 online resource (ii, 60 pages) : colour illustrations. |
| Catalogue number |
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| Subject terms | International finance -- Econometric models. Monetary policy -- Econometric models. Transmission mechanism (Monetary policy) -- Econometric models. Finances internationales -- Modèles économétriques. Politique monétaire -- Modèles économétriques. Mécanismes de transmission (Politique monétaire) -- Modèles économétriques. |
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