01941cas a2200253 a 4500 AALejournalIMF018090 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484330944 1018-5941 BD-DhAAL BD-DhAAL MacDonald, Margaux. Unconventional Monetary Policy in a Small Open Economy / Margaux MacDonald, Micha, Ksawery Popiel. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (61 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 investigates the effects of unconventional monetary policy in a small open economy. Using recently proposed shadow interest rates to capture unconventional monetary policy at the zero lower bound (ZLB) we estimate a Bayesian structural vector autoregressive model for Canada - a useful case where foreign shocks can be proxied by U.S. variables alone. We find that, during the ZLB period, Canadian unconventional monetary policy increased output (measured by industrial production) by 0.013 percent per month on average while US unconventional monetary policy raised Canadian output by 0.127 percent per month on average. Our results demonstrate the effectiveness of domestic unconventional monetary policy and the strong positive spillover effects that foreign unconventional monetary policies can have in a small open economy. Mode of access: Internet Popiel, Micha, Ksawery. IMF Working Papers; Working Paper ; No. 2017/268 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/268/001.2017.issue-268-en.xml IMF e-Library