Download or read book Monetary Shocks at High-Frequency and Their Changing FX Transmission Around the Globe written by Massimo Ferrari and published by . This book was released on 2016 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that the impact of monetary policy on exchange rates has been growing significantly in recent years. Our results are established by a high-frequency event study of how key fixed income instruments - Overnight-Index Swaps (OIS) and Bonds - respond jointly with exchange rates to news about monetary policy from seven major central banks. News affecting short-term maturity bonds tend to have the strongest impact, highlighting the relevance of communication regarding the path of future monetary policy for exchange rate movements. Overall, our findings suggest that the external channel of monetary transmission has been alive and well, even though many central banks have hit the effective lower bound in recent years.