The Spillover Effects of American Monetary Policy Shifts

The monetary policy of the United States has profound impacts on the global economy and financial markets, and the radical adjustments of the monetary policy of the United States and other developed countries are important attributors of global financial risks. Studying the evolvement of the monetary policy of the Federal Reserve and the spillover effects will help us to predict the direction of the monetary policy of the Federal Reserve in the future, and take initiatives to deal with and prevent the potential risks brought by the changes of the monetary policy. By reviewing the existing literatures, it is found that there is heterogeneity in the impacts of US monetary policy shifts on the price levels, interest rates, exchange rates and financial markets of different economies. In the future, researchs on the spillover impacts of US monetary policy shifts can be related to digital currency, Bitcoin and other virtual currencies.