02136cas a2200277 a 4500 AALejournalIMF018436 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484353530 1018-5941 BD-DhAAL BD-DhAAL Blagrave, Patrick. Cross-Border Transmission of Fiscal Shocks : The Role of Monetary Conditions / Patrick Blagrave, Giang Ho, Ksenia Koloskova, Esteban Vesperoni. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (32 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 Fiscal stimulus was widely advocated during the global crisis, a period characterized by monetary policy constrained by the effective lower bound (ELB) in many countries, in part because of expected positive spillovers. Standard New Keynesian models predict the cross-border transmission of fiscal shocks is stronger when monetary policy is constrained in recipients. However, the empirical evidence is scarce. This paper bridges this gap by looking at the impact of fiscal shocks in systemic (source) economies on output and demand components in a large group of (recipient) countries, under different monetary policy conditions. Empirical results are compared to simulations with a state-of-the-art estimated open-economy New Keynesian model. Our results corroborate model predictions, finding larger spillovers when recipients are at the ELB, driven by stronger responses of investment and consumption relative to normal times. Mode of access: Internet Ho, Giang. Koloskova, Ksenia. Vesperoni, Esteban. IMF Working Papers; Working Paper ; No. 2018/103 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/103/001.2018.issue-103-en.xml IMF e-Library