02472cas a2200337 a 4500 AALejournalIMF023218 230101c9999 xx r poo 0 0eng d 9798400219948 20.00 USD 1018-5941 BD-DhAAL BD-DhAAL Arbatli Saxegaard, Elif. U.S. Monetary Policy Shock Spillovers : Evidence from Firm-Level Data / Elif Arbatli Saxegaard, Melih Firat, Davide Furceri, Jeanne Verrier. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (69 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 We examine three main channels through which U.S. monetary policy shocks affect firm investment in foreign countries: (1) the balance sheet channel; (2) the financial channel of the exchange rate; and (3) the trade channel. For this purpose, we use quarterly firm-level data for 63 advanced economies (AEs) and emerging market and developing economies (EMDEs) over 1996-2016. Our results suggest an important and independent role for all three key channels. U.S. monetary policy shocks have larger effects on investment for firms that are more leveraged (balance sheet channel), for firms that have a higher share of debt in foreign currency (financial channel of the exchange rate), and for firms that operate in sectors with higher export dependence (trade channel). Back-of-the-envelope calculations suggest that the balance sheet channel is the most important channel of transmission of U.S. monetary policy shocks on aggregate firm investment. Mode of access: Internet Macroeconomic Aspects of International Trade and Finance imf Monetary Policy, Central Banking, and the Supply of Money imf Multiple or Simultaneous Equation Models imf Multiple Variables imf Production and Organizations imf Firat, Melih. Furceri, Davide. Verrier, Jeanne. IMF Working Papers; Working Paper ; No. 2022/191 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=191 IMF e-Library