TY - BOOK ID - 85290768 TI - International Spillovers of Forward Guidance Shocks AU - Jones, Callum. AU - Kulish, Mariano. AU - Rees, Daniel. PY - 2018 SN - 1484356640 1484356616 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Monetary policy. KW - Monetary management KW - Economic policy KW - Currency boards KW - Money supply KW - Banks and Banking KW - Inflation KW - Macroeconomics KW - Money and Monetary Policy KW - Business Fluctuations KW - Cycles KW - Monetary Policy KW - Open Economy Macroeconomics KW - Interest Rates: Determination, Term Structure, and Effects KW - Externalities KW - Price Level KW - Deflation KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Monetary economics KW - Banking KW - Monetary expansion KW - Central bank policy rate KW - Spillovers KW - Consumption KW - Monetary policy KW - Financial services KW - Financial sector policy and analysis KW - Prices KW - National accounts KW - Interest rates KW - International finance KW - Economics KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:85290768 AB - After 2007, countries that cut their policy interest rates close to zero turned, among other policies, to forward guidance. We estimate a two-country model of the U.S. and Canada to quantify how unexpected changes in U.S. forward guidance affected Canada. Expansionary U.S. forward guidance shocks, like conventional policy shocks, are beggar-thy-neighbor and depress Canadian output, but by twice as much as conventional shocks. We find that the effect of U.S. forward guidance shocks on Canadian output, unlike conventional policy shocks, depends on the state of U.S. demand and can be five times smaller when U.S. demand is weak. ER -