The Spillovers From Global Monetary Easing

The video discusses how global markets are interconnected, acting as substitutes for investors. It highlights the impact of unconventional monetary policies in the Eurozone, UK, and Japan on US interest rates, emphasizing the role of currency risk and volatility. The discussion also covers the concept of term premium in the bond market, explaining its significance and how global factors influence it. The video concludes by examining the effects of global divergences on the US economy, particularly in terms of currency value and bond yields.

What is the significance of unconventional easing abroad in the eurozone on US rates?

How do global divergences affect the value of the dollar and US growth?

Explain the difference between conventional monetary policy and unconventional easing in terms of spillover effects.

What is the term premium and why is it important in the bond market?

Discuss the implications of negative term premiums for investors in the treasury market.