Joint Research Program
XX Meeting of the Central Bank Researchers Network

International Spillovers of Monetary Policy

Ángel Estrada García
Alberto Ortiz Bolaños



Since 2005 CEMLA's Central Banks have conducted joint research activities to bolster economic research on topics of mutual interest. Annual or multiannual joint research activities have been developed in the following topics: i) Estimation and use of nonobservable variables in the region; ii) The development of dynamic stochastic general equilibrium models; iii) The transmission mechanism of monetary policy; iv) Economic policy responses to the financial crisis; v) Inflationary dynamics, persistence and price and wage formation; vi) Capital flows and its macroeconomic impact; vii) Asset pricing, global economic conditions and financial stability; viii) Monetary policy and financial stability in small open economies; ix) Monetary policy and financial stability; x) Monetary policy and financial conditions; and xi) Households' financial decisions.

These topics cover most of central banks' main tasks and the developments and changes introduced since 2005. In this respect, the response of central banks in advanced economies to the global financial crisis, basically low interest rates and unconventional policies, marked a radical change in the traditional approach to monetary policy. Among other things, concerning for example objectives and instruments, the idea that a central bank can abstract from the consequences that its decisions could have on other economies was clearly called into question. Along these lines, the crisis gave also rise to a growing interest to understand the international spillovers of monetary policy.

In this context, in the 2014 Meeting of CEMLA's Research Network, CEMLA's Central Banks decided that VIII starting in 2015 they would conduct joint research on international spillovers of monetary policy. The Associate Directorate General International Affairs of Banco de España, with technical assistance from CEMLA, coordinated this joint research. Researchers from the Central Banks of Brazil, Chile, Colombia, Costa Rica, Dominican Republic, England, Europe (European Central Bank), Guatemala, Jamaica, Mexico, Peru, Spain and Uruguay participated in the activities of this joint research. Research work was supported by webinars of academic specialists, virtual meetings where research progress was presented, a workshop at CEMLA, presentations and discussions at the 2015 CEMLA Research Network Meeting hosted by the Banco Central de República Dominicana and an internal blind review process. The documents that integrate this book represent a memoir of the work done by this group of researchers and it gives a comprehensive analysis of the spillover effects of US monetary policy in Latin America and the Caribbean. This book, in line with CEMLA's objectives, promotes a better understanding of monetary and banking matters in Latin America and the Caribbean.


Fernando Tenjo Galarza
General Director


International Spillovers of Monetary Policy


Ángel Estrada García
Alberto Ortiz Bolaños

The Transmission of US Monetary Policy Normalization to Emerging Markets
Kólver Hernández

Reassessing the Effects of Foreign Monetary Policy on Output: New Evidence from Structural and Agnostic Identification Procedures
Jorge Fornero, Roque Montero and Andrés Yany

The Effect of International Monetary Policy Expansions on Costa Rica
José Pablo Barquero and Pedro Isaac Chávez López

The Effects of US Unconventional Monetary Policies in Latin America
Fructuoso Borrallo, Ignacio Hernando and Javier Vallés

Have QE Programs Affected Capital Flows to Emerging Markets?: A Regional Analysis
Claudia Ramírez and Miriam González

The Effects of USA Monetary Policy on Central America and the Dominican Republic
Ariadne M. Checo, Salomé Pradel and Francisco A. Ramírez

Quantitative Easing and United States Investor Portfolio Rebalancing towards Foreign Assets
João Barata R. B. Barroso

Investigating Monetary Policy Spillovers from the United States of America to Jamaica
André Murray

Impact of International Monetary Policy in Uruguay: A favar Approach
Elizabeth Bucacos