Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.
Working Paper: Stock market evidence on the international transmission channels of US monetary policy surprises
The Working Paper evaluates the economic sources of the stock market responses of 40 countries to surprises in US monetary policy. We show that fed funds rate and large-scale asset purchases surprises affect foreign stock markets because they influence foreign countries’ real economic outlook. Forward guidance surprises seem to convey non-monetary information.