Monetary Policy Spillovers through Invoicing Currencies

This paper explores the role of trade invoicing currencies in international spillover monetary policy. Using high-frequency measures Federal Reserve policy shocks, I show exchange rates, interest rates and equity returns countries with larger shares dollar-invoiced imports systematically respond more to US document similar transmission effects from ECB shocks euro-invoiced imports. rationalize these findings within a New Keynesian framework. As result effects, where traded goods are should be less effective at implementing domestic