Abstract
This thesis analyzes the transmission of U.S. monetary policy to economic growth at home and abroad. Macroeconomic data from the U.S., Canada, the U.K., and Japan were analyzed using Granger causality and vector autoregressions. This study found that economic growth and interest rates in small open economies (Canada and U.K.) respond to monetary policy shocks in neighboring large open economies (U.S. and Germany). The results suggest that yields, the yield curve, and economic growth respond significantly to monetary policy shocks abroad.