IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05654118.html

Dynamic Effects of U.S. Monetary Policy, Unconventional Tools, and Trade Integration

Author

Listed:
  • Chokri Zehri

    (PSAU - Prince Sattam Bin Abdul-Aziz University [Al Kharj, Saudi Arabia])

  • Abdullah Alsadan

    (PSAU - Prince Sattam Bin Abdul-Aziz University [Al Kharj, Saudi Arabia])

  • Wissem Ajili Ben Youssef

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • Latifa Saleh Iben Ammar

    (PSAU - Prince Sattam Bin Abdul-Aziz University [Al Kharj, Saudi Arabia])

Abstract

The study examines the contagion and asymmetric impact of US monetary policy (USMP) on emerging market economies' (EMEs) domestic interest rates. We apply an Autoregressive Distributed Lag error correction model with structural breaks from 2020 to 2023. This model is applied to 26 EMEs. Our findings reveal a substantial influence of large‐scale asset purchases (a quantitative easing tool) and the 10‐year Treasury yield (a long‐term conventional tool) on EMEs' interest rates across both long‐ and short‐term perspectives. Furthermore, we identify an asymmetric effect, with the impact of USMP varying across EMEs, particularly pronounced in countries with extensive trade connections to the USA. Our results highlight the swift response of EMEs to USMP changes, especially in the short term. The study presents policy recommendations to help EMEs manage the effects of changes in USMP.

Suggested Citation

  • Chokri Zehri & Abdullah Alsadan & Wissem Ajili Ben Youssef & Latifa Saleh Iben Ammar, 2026. "Dynamic Effects of U.S. Monetary Policy, Unconventional Tools, and Trade Integration," Post-Print hal-05654118, HAL.
    • Handle: RePEc:hal:journl:hal-05654118
    DOI: 10.1002/ijfe.70048
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05654118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.