University of Chinese Academy of Sciences Researchers Illuminate Research in Industrial Engineering (The spillover effect of US monetary policy on the international financial market: Evidence from network analysis): Engineering – Industrial Engineering

2025 MAR 06 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Researchers detail new data in industrial engineering. According to news originating from Beijing, People’s Republic of China, by NewsRx correspondents, research stated, “The dominant role of the US dollar as a global currency allows the Federal Reserve’s monetary policy to significantly influence economic and financial dynamics in other countries through mechanisms such as exchange rates, interest rates, and capital flows.”

Financial supporters for this research include National Social Science Fund of China; Ministry of Science And Technology of The People’s Republic of China; Fundamental Research Funds For The Central Universities; National Office For Philosophy And Social Sciences; National Natural Science Foundation of China.

The news editors obtained a quote from the research from University of Chinese Academy of Sciences: “This paper examines how shifts in the Federal Reserve’s policy can precipitate economic disruptions in peripheral nations, potentially heightening the risk of systemic financial crises. By utilizing the directed acyclic graph (DAG) technique and network topology analysis, we explore the dynamic evolution of systemic risk within global financial markets from a network perspective. Our findings reveal that the US financial market is a net exporter of risk spillovers, whereas China predominantly receives these volatility transmissions. Such systemic financial risks prove contagious across markets.”

According to the news editors, the research concluded: “In the wake of Federal Reserve adjustments, China’s financial markets invariably experience impacts, compelling them to align with U.S. policy rate changes and thereby compromising China’s monetary policy independence.”

For more information on this research see: The spillover effect of US monetary policy on the international financial market: Evidence from network analysis. Journal of Management Science and Engineering, 2025,10(1):111-125. The publisher for Journal of Management Science and Engineering is KeAi Communications Co., Ltd.

A free version of this journal article is available at https://doi.org/10.1016/j.jmse.2024.12.001.

Our news journalists report that additional information may be obtained by contacting Ying Hou, School of Economics and Management, University of Chinese Academy of Sciences, Beijing, 100190, People’s Republic of China. Additional authors for this research include Wei Li, Dexiang Wu, Ying Zang, Long Quach.

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