The International Transmission of Monetary Policy

58 Pages Posted: 20 Aug 2018 Last revised: 18 Nov 2021

See all articles by Claudia Buch

Claudia Buch

Deutsche Bundesbank

Matthieu Bussière

Banque de France

Linda S. Goldberg

Federal Reserve Bank of New York; National Bureau of Economic Research (NBER)

Robert Hills

Bank of England

Multiple version iconThere are 2 versions of this paper

Date Written: 2018


This paper presents the novel results from an internationally coordinated project by the International Banking Research Network (IBRN) on the cross-border transmission of conventional and unconventional monetary policy through banks. Teams from seventeen countries use confidential micro-banking data for the years 2000 through 2015 to explore the international transmission of monetary policies of the U.S., euro area, Japan, and United Kingdom. Two other studies use international data with different degrees of granularity. International spillovers into lending to the private sector do occur, especially for U.S. policies, and bank-specific heterogeneity influences the magnitudes of transmission. The effects are supportive of the international bank lending channel and the portfolio channel of monetary policy transmission. They also show that the frictions that banks face matter; in particular, foreign currency funding and hedging considerations can be a key source of heterogeneity. The forms of bank balance sheet heterogeneity that differentiate spillovers across banks are not uniform across countries. International spillovers into lending can be large for some banks, even while the average international spillovers of policies into nonbank lending generally are not large.

Keywords: monetary policy, international spillovers, cross-border transmission, global bank, global financial cycle

JEL Classification: E52, F3, F4, G15, G21

Suggested Citation

Buch, Claudia and Bussiere, Matthieu and Goldberg, Linda S. and Hills, Robert, The International Transmission of Monetary Policy (2018). Deutsche Bundesbank Discussion Paper No. 16/2018, Available at SSRN: or

Claudia Buch (Contact Author)

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431

Matthieu Bussiere

Banque de France ( email )


Linda S. Goldberg

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-2836 (Phone)
212-720-6831 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert Hills

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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