Volumen 25: Monetary Policy and Global Spillovers: Mechanisms, Effects, and Policy Measures


Central Banks in emerging markets have been forced in the last decade to deal with spillovers from the crises in the United States and Europe and from the extraordinary measures respectively taken by the Federal Reserve and the European Central Bank.
This volume provides a comprehensive study of the channels, mechanisms, and quantitative effects of spillovers from developed economies on emerging economies, as well as policy responses from policy makers in the latter. It collects seven papers by world-leading experts discussing the role of information, connectivity, the international financial network, sovereign bonds prices, capital flows and financial frictions.


Enrique G. Mendoza
Ernesto Pastén
Diego Saravia


The Great Recession and the Euro Crisis have forced central banks in developed countries to take extraordinary measures to match the times. One important question, yet not always at the center of the debate, is the “spillover” effects of these measures on emerging markets. This volume fills this gap by putting together a first-rate group of contributors to reflect about the mechanisms and quantification of spillover effects on emerging markets of monetary policy in developed countries. In a world where countries are interconnected as never before and where a new policy paradigm has emerged as a response to recent crises, this volume is an invaluable asset for researchers and policy makers with an interest in emerging countries and the international propagation of crises.


Jean Tirole
Sveriges Riksbank Prize in Economic Sciencies in Memory of Alfred Nobel 2014; Scientific Director,
Toulouse School of Economics


The long recession following the Lehman Brothers crisis, surprising shocks like the Taper Tantrum, and the commodity super-cycle, to name a few, have made it evident that the conventional approach to macro modeling, which largely ignores financial, informational and liquidity frictions, is in need of thorough rethinking. These essays written by leading experts in the field meet the challenge and offer new perspectives on issues like the impact of current US monetary policy on emerging market bonds, characteristics of current commodity markets, and monetary and regulatory policy in small economies subject to a variety of capital market imperfections that have become evident at the turn of the twenty-first century. The book is an important and timely addition to the literature, which will likely inspire graduate students and mature researchers ready to think outside the box.

Guillermo A. Calvo
Professor of International and Public Affairs, Columbia University


This volume addresses one of the most important questions that central banks in emerging markets currently face: How should they respond to the extraordinary monetary policy measures implemented by the United States and Europe? A carefully chosen body of papers investigates different aspects of this question from theoretical and quantitative perspectives. This volume is a much needed addition to the literature and should be of much interest to academics, policymakers and financial analysts alike.

Markus K. Brunnermeier
Edwards S. Sanford Professor of Economics and Director of the Bendheim Center for Finance,
Princeton University