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What Explains International Interest Rate Co‐Movement?

open access: yesJournal of Applied Econometrics, EarlyView.
ABSTRACT The international co‐movement of interest rates reflects correlated business‐cycle fluctuations, largely driven by demand shocks. Monetary policy in advanced economies follows domestic mandates—inflation and the output gap—and does not respond to foreign policy shocks.
Annika Camehl, Gregor von Schweinitz
wiley   +1 more source

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