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How Do Rising U.S. Interest Rates Affect Emerging and Developing Economies ? It Depends (English)

This paper examines the implications of different types of interest rate shocks in the United States for emerging market and developing economies (EMDEs). It first classifies changes in U.S. interest rates into those caused by changes in inflation expectations (“inflation” shocks), changes in perceptions of the Federal Reserve’s reaction function (“reaction” shocks), and changes in real activity (“real” shocks). The analysis attributes this year’s...
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Citation

Arteta,Carlos; Kamin,Steven Brian; Ruch,Franz Ulrich.

How Do Rising U.S. Interest Rates Affect Emerging and Developing Economies ? It Depends (English). Policy Research working paper ; no. WPS 10258 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099036212082239238

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