Matthieu Bussière, Jakob de Haan, Robert Hills, 20 January 2021

Despite being a central question in international macroeconomic policy debates, there is still only limited empirical evidence on the extent to which macroprudential policy affects the transmission of monetary policy and the propagation of shocks across borders.  This column presents findings from the latest project of the International Banking Research Network. The interactions between monetary and macroprudential policies are shown to significantly alter cross-border bank flows across a wide range of countries, though the magnitudes differ appreciably across countries and instruments.

Claudia M. Buch, Matthieu Bussière, Linda Goldberg, Robert Hills, 20 April 2018

The channels through which one country’s monetary policy affects the international economy are still not that well understood. This column presents findings from latest project of the International Banking Research Network, which reveal that monetary policy spillover effects via bank lending are significant across countries in both conventional and unconventional periods. While the results provide some support to the bank lending and portfolio channels traditionally studied in the literature, they also suggest that other bank-level frictions matter.

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