ECO Seminar/Webinar – Giovanni Ricco

december, 2022

15dec13:0014:00ECO Seminar/Webinar - Giovanni Ricco


Event Details

CEF.UP – ECO Seminar/Webinar

Thursday – December 15th, 2022, at 1:00 p.m. |Room 305| Online


The Global Transmission of U.S. Monetary Policy


Giovanni Ricco – University of Warwick



“The US monetary policy propagates internationally by affecting external demand and due to the role of the dollar as the world’s dominant currency in financial markets, trade invoicing, and foreign exchange reserves. We quantify spillover effects by employing a state-of-the-art high-frequency identification and big data techniques, in conjunction with a harmonised dataset covering 30 economies and over 150,000 data-points. We report three novel stylised facts. First, a US monetary policy tightening has large and qualitatively homogeneous real and nominal contractionary spillovers onto both advanced and emerging economies. Second, flexible exchange rates cannot fully insulate domestic economies. Movements in risk premia limit central banks’ ability to control the yield curve, even in advanced economies. Third, financial channels dominate over demand and exchange rate channels in the transmission to real variables, while the transmission via oil and commodity prices determines nominal spillovers. The latter is an important novel channel not previously reported in the literature. ”




(Thursday) 13:00 - 14:00

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