The international co-movement of interest rates reflects correlated business-cycle fluctuations, largely driven by demand shocks. Monetary policy in advanced economies follows domestic mandates – inflation and the output gap – and does not respond to foreign policy shocks. We derive this...

This paper investigates the dynamic trade-off between health outcomes and economic activity during the COVID-19 pandemic. Employing a panel vector autoregressive (PVAR) model with sign restrictions for 46 countries, we utilize weekly data on infections, the OECD GDP tracker, and the Oxford...

We develop a structural vector autoregressive framework that combines external instruments and heteroskedasticity for identification of monetary policy shocks. We show that exploiting both types of information sharpens structural inference, allows testing the relevance and exogeneity condition...