W e investigate the monetary policy transmission in a representative small open economy Canada over 2000 2017. By using a novel set of external instruments for monetary policy shocks we identify the impacts of domestic (Canada) and foreign (United States) monetary shocks on financial and...

This paper investigates the domestic and international transmission of monetary policy shocks into financial markets in five advanced open economies with inflation targeting– Australia, Canada, New Zealand, South Korea, and United Kingdom. This paper is new in identifying the impact of foreign...

We analyze the evolution and drivers of inflation during the pandemic and the likely trajectory of inflation in the near-term using an event study of inflation around global recessions and a factor-augmented vector auto-regression (FAVAR) model. We report three main results. First, the decline...

This paper studies the effects of global and domestic inflation shocks on core price inflation in 105 countries between 1970 and 2016, by using a heterogeneous panel vector-autoregressive model. The methodology allows accounting for differences across groups of countries (advanced economies,...

This paper investigates the nature of monetary policy transmission in the U.S. and selected small open economies by estimating SVAR models using the external instrument identification method. Differing from related studies on the U.S., which employ high-frequency futures data on Federal Funds...

This paper examines the global drivers of inflation in 55 countries over the 1970-2022 period. We estimate a Factor-Augmented Vector Autoregression model for each country and assess the importance of several global (demand, supply, and oil price) and domestic shocks. We report three main...