00000nam 2200000zi 4500 9.933705 CaOODSP 20240209103509 m o d f cr mn||||||||| 240209t20242024onca ob f000 0 eng d CaOODSP eng rda CaOODSP eng eng fre FB3-5/2024-3E-PDF Wu, Jing Cynthia, author. The role of international financial integration in monetary policy transmission / by Jing Cynthia Wu, Yinxi Xie and Ji Zhang. [Ottawa] : Bank of Canada = Banque du Canada, 2024. ©2024 1 online resource (ii, 60 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2024-3 ISSN assigned to different series. "Category/Catégorie: Non-Sensitive/Non-Délicat." "Last updated: February 6, 2024." Includes bibliographical references (pages 40-44). "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. Includes abstracts in English and French. 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. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2024-3. (CaOODSP)9.806221 PDF 988 KB https://publications.gc.ca/collections/collection_2024/banque-bank-canada/FB3-5-2024-3-eng.pdf