This paper revisits the definition of monetary policy autonomy and develops a new method to identify autonomy regimes for a set of countries. Compared to the traditional identification approach, which only focuses on correlations among domestic and foreign interest rates, monetary policy...

Recent evidence has shown that the dollar depreciates instead of appreciates in response to a tightening of U.S. monetary policy. This phenomenon generates a U.S. exchange rate puzzle. Following Jarocinski and Karadi (2020), we divide the U.S. monetary surprises into pure monetary policy and...