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This paper examines the transmission of changes in the U.S. monetary policy to localcurrency sovereign bond yields of Brazil and Mexico. Using vector error-correction models, we find that the U.S. 10-year bond yield was a key driver of long-term yields in these countries, and that Brazilian yields were more sensitive to U.S. shocks than Mexican yields during 2010-13.

Title : Spillovers from U.S. Monetary Policy Normalization on Brazil and Mexico's Sovereign Bond Yields
Author : Carlos Goes
Language : en
Rating :
4.90 out of 5 stars
Type : PDF, ePub, Kindle
Uploaded : Apr 11, 2021

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