For a discussion of the theoretical underpinnings and a review of the empirical evidence on the exchange rate channel of unconventional policies, see Lane, P.R. (2019). 22. See Rey, H. (2013), “Dilemma, not Trilemma: The global financial cycle and monetary policy independence”, Jackson Hole Economic Policy Proceedings, Federal Reserve Bank of Kansas City, pp. 1‑2. 23.
While possibly surprising, it is the most common finding in the empirical literature that US monetary policy spillovers to the overall rest of the world and the average non-US country in the rest of the world are as large and oftentimes larger than the domestic effect in the US. See, for example, Dées, S. and Galesi, A.