Research by Federal Reserve staff suggests that, all told, U.S. monetary policy spillovers to other economies are positive—that is, policies designed to provide stimulus to the U.S. economy also boost activity abroad, as negative effects of dollar depreciation are offset by positive effects of higher U.S. imports and easier foreign financial conditions.26 However, this issue is far from settled, as are a host of other related questions, including the following: Do U.S. monetary policy actions affect advanced and emerging market countries differently?
Do conventional and unconventional monetary policies spill over to other countries differently? And to what extent are U.S. interest rates and financial conditions influenced by easing measures abroad?