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The Role of U.S. Monetary Policy in Global Banking Crises
Report

The Role of U.S. Monetary Policy in Global Banking Crises


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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

The Federal Reserve's monetary policy holds implications not just for the United States but for the global economic architecture. Central bankers abroad must respond to American monetary activities by deploying their own resources as a means to achieve their distinctive policy objectives. Writing for the Federal Reserve Board, economists Bora Durdu, Alex Martin and Ilknur Zer examine the role of US monetary policy as it relates to financial stability in other nations. Financial professionals, economists and policy experts will appreciate the insightful analysis and comprehensive research contained in this authoritative report.

Take-Aways

  • US Federal Reserve actions reverberate through other countries.
  • The extent of a nation’s financial and commercial ties with the United States determines the former’s susceptibility to spillover effects.
  • American monetary policy – via its impact on global capital flows – influences a foreign nation’s default risk profile. 

About the Authors

Bora Durdu, Alex Martin and Ilknur Zer are economists with the Federal Reserve Board.