Working Paper: Stock market evidence on the international transmission channels of US monetary policy surprises

Working Paper - May 2021 - No. 178

Authors Maurer, Tim Dominik (Danmarks Nationalbank); Nitschka, Thomas (Swiss National Bank)
Subject Monetary-policy transmission
Type Working paper
Year 2021
Published 19 May 2021
Abstract icon 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.