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STI Webinar on Policies to Offset U.S. Monetary Policy Spillovers

May 12 @ 10:00 am - 11:30 am


Stephan G. Cecchetti (Rosen Family Chair in International Finance, Brandeis International Business School)
Rawat Umang (Economist, Asia and Pacific Department, IMF)
Machiko Narita (Senior Economist, Monetary and Capital Markets Department, IMF)


Ales Bulir (Deputy Director, IMF – STI)

Target Audience

Senior officials in decision-making positions and their staff from central banks and regulatory agencies. Senior officials could include Deputy Governors and heads of departments.

Webinar Description

Accommodative U.S. monetary policy continues unabated even after nearly two decades. There is growing recognition that such actions have extra-territorial spillovers, driving up financial system leverage elsewhere in the world. Faced with financial stability threats that are not of their own making, what can these countries do? Specifically, is there a role for macroprudential tools, capital controls or foreign exchange intervention in safeguarding financial stability from risks arising externally? We examine the efficacy of these policy interventions by first documenting the size and importance of U.S monetary policy spillovers, and then exploring whether preemptive or reactive policy interventions can mitigate them. Using a sample of 950 bank and nonbank financial firms across 28 non-U.S. economies over the past two decades, we show that if policymakers are able implement policies prior to Federal Reserve easing, financial institutions’ do not increase their leverage by as much as they otherwise would. By contrast, it is more difficult to counter the spillovers with reactive policy interventions. That is, preemptive policies are more effective than reactive ones in mitigating financial stability risks.


To register for this webinar, please complete the online form here by May 10, 2021. Only official email addresses are accepted.


May 12
10:00 am - 11:30 am
Course Number

Application Deadline

May 10, 2021