Interest rate swaps and the transmission mechanism of monetary policy: a quantile connectedness approach

Ioannis Chatziantoniou, David Gabauer, Alexis Stenfors

Research output: Working paper

Abstract

We investigate 1-year interest rate swaps on USD, EUR, JPY and GBP between 2005 and 2020 utilising a quantile connectedness model. This approach allows for a nuanced investigation of connectedness and adds to understanding the monetary policy transmission mechanism within a highly integrated international financial system. Substantial interest rate changes (in either direction) matter for connectedness in financial markets. The results also indicate which currency drives developments depending on the direction of the change in interest rates.
Original languageEnglish
PublisherUniversity of Portsmouth
Pages1-9
Number of pages9
Publication statusPublished - 1 Mar 2021

Publication series

NameWorking Papers in Economics and Finance

Keywords

  • interest rate swaps
  • monetary policy transmission mechanism
  • quantile vector autoregression

Fingerprint

Dive into the research topics of 'Interest rate swaps and the transmission mechanism of monetary policy: a quantile connectedness approach'. Together they form a unique fingerprint.

Cite this