01645cas a2200253 a 4500 AALejournalIMF006886 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455210855 1018-5941 BD-DhAAL BD-DhAAL Laeven, Luc. U.S. Monetary Shocks and Global Stock Prices / Luc Laeven, Hui Tong. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for sectors that depend on external financing, and for countries that are more integrated with the global financial market. These findings suggest that financial frictions play an important role in the transmission of monetary policy, and that U.S. monetary policy influences global capital allocation. Mode of access: Internet Tong, Hui. IMF Working Papers; Working Paper ; No. 2010/278 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/278/001.2010.issue-278-en.xml IMF e-Library