NY Fed, Report: How Much Can the Fed’s Tightening Contract Global Economic Activity? 

“Recent work helps shed light on this debate by assessing the effect of U.S. monetary policy on foreign firms. Using cross-country firm-level data for 1995—2019, this research examines how U.S. monetary policy shapes global firms’ sales and investment spending. The richness of the sample enables the authors to explore not merely the impact of these shocks on the average foreign firm, but also how country- and firm-specific characteristics intensify or dampen this impact. In addition, they use information on country-sector input-output linkages from the World Input-Output Database (WIOD) to determine how exposure to globalization via trade connectivity plays into international transmission of U.S. monetary policy.”