A Study About The Different Impacts Of U.S. Monetary Policy On Trade Of Various Countries

U.S. monetary policy would not only play a role in the U.S. economy, but also affectthe world economy in a certain degree. How does the impact of U.S. monetary policy passthrough other countries? Are the effects of U.S. monetary policy in different countries forinternational trade the same? What factors have led to that U.S. monetary policy haddifferent impacts in different countries?The author analyzed the methods of international transmission of U.S. monetarypolicy. According to the factors that affected a country’s import and export trade, theauthor has found what properties of a country itself would affect international transmissionof U.S. monetary policy.In empirical terms, various countries in the world were divided into different typesaccording to different properties. The author validated the differences among differenttypes of countries affected by U.S. monetary policy using panel data model.At the sametime, the author analyzed the specific performance of the differences among differenttypes of countries. Through theoretical analysis and practical testing, the authorconcluded:The U.S. monetary policy tools could be summarized as the federal funds interest rateand monetary supply. U.S. monetary policy passed through other countries based on thetheory of purchasing power parity and the theory of interest rate parity.At the same time, geographical distribution、exchange rate system、 dependence onforeign trade、the level of GDP and GDP per capita were five factors which have led tothat U.S. monetary policy had different impacts in different countries.On the basis of these conclusions, in order to get rid of the impact of U.S. monetarypolicy and prevent unnecessary risk, the paper has suggested:First, in the premise of labor advantage’s continuation, change the original advantageinto capital and technology advantages step by step; Second, insist on the RMB exchangerate reform and promote the internationalization of RMB; Third, expand the scope ofimport and export and reduce dependence on single-country; Fourth, adjust the industrialstructure and promote economic development entities.