The Role of Global Oil Prices in US Monetary Policy Spillovers to Small Open Economies: Evidence From MINT Countries

We explore the importance of global oil prices in the spillovers of US monetary policy to four small open economies (SOEs): Mexico, Indonesia, Nigeria, and Turkey (MINT). Our findings indicate that oil prices amplify the spillover effects on MINT’s real GDP. The negative impact is more pronounced when oil prices fall. This suggests that oil prices are a crucial determinant of US monetary policy spillovers.