Working Paper: Stock market evidence on the international transmission channels of US monetary policy surprises
Working Paper - May 2021 - No. 178
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.