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This paper explores the effects of unconventional monetary and exchange rate policies. We find that official foreign asset purchases have large effects on current accounts that diminish as capital mobility rises and spill over to financially integrated countries. There is an additional effect through the stock of central bank assets. Domestic asset purchases have an effect on current accounts only when capital mobility is low. We also find that rising US bond yields drive foreign yields, stock prices and depreciations, but less so on days of policy announcements. We develop a theoretical model that is broadly consistent with our results.

Monetary policy. --- Foreign exchange rates. --- Exchange rates --- Fixed exchange rates --- Flexible exchange rates --- Floating exchange rates --- Fluctuating exchange rates --- Foreign exchange --- Rates of exchange --- Monetary management --- Economic policy --- Currency boards --- Money supply --- Rates --- Exports and Imports --- Foreign Exchange --- Investments: Bonds --- Money and Monetary Policy --- Current Account Adjustment --- Short-term Capital Movements --- Monetary Policy --- General Financial Markets: General (includes Measurement and Data) --- International economics --- Monetary economics --- Investment & securities --- Currency --- Current account --- Unconventional monetary policies --- Bond yields --- Current account balance --- Balance of payments --- Monetary policy --- Financial institutions --- Bonds --- United States