01750cas a2200265 a 4500 AALejournalIMF018437 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484353554 1018-5941 BD-DhAAL BD-DhAAL Jones, Callum. International Spillovers of Forward Guidance Shocks / Callum Jones, Mariano Kulish, Daniel Rees. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (43 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 After 2007, countries that cut their policy interest rates close to zero turned, among other policies, to forward guidance. We estimate a two-country model of the U.S. and Canada to quantify how unexpected changes in U.S. forward guidance affected Canada. Expansionary U.S. forward guidance shocks, like conventional policy shocks, are beggar-thy-neighbor and depress Canadian output, but by twice as much as conventional shocks. We find that the effect of U.S. forward guidance shocks on Canadian output, unlike conventional policy shocks, depends on the state of U.S. demand and can be five times smaller when U.S. demand is weak. Mode of access: Internet Kulish, Mariano. Rees, Daniel. IMF Working Papers; Working Paper ; No. 2018/114 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/114/001.2018.issue-114-en.xml IMF e-Library