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Oliver Masetti
Oliver Masetti works as a research analyst in the World Bank Development Economics Group's (DEC) Operations and Strategy Unit. Before joining the World Bank he worked for more than four years as an emerging markets economist at Deutsche Bank in Frankfurt covering countries in sub-Saharan Africa and the MENA (Middle East and North Africa) region. Oliver studied economics at the universities of Mannheim, St. Gallen, Bocconi and the Stockholm School of Economics. He is currently finishing his Ph.D. in economics at the University of Frankfurt. His research interests include macro-finance, monetary policy spillovers, and corporate finance.
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Should emerging markets worry about US monetary policy announcements?
Emerging economies are routinely affected by monetary policy announcements in the US. This column finds that US monetary policy surprises have a significant impact on emerging economies’ exchange rates, equity prices, and bond yields. The impact is larger for surprise tightening of policy than for surprise easing, and disproportionately larger for large surprises. The spillover effects of policy announcements of other advanced economies are much weaker than those of the US.
