International spillover effects of unconventional monetary policy announcements by the Fed

This thesis examines the impact and channels of unconventional monetary policy announcements by the Fed on eurozone government bond markets. The results indicate that these announcements affect European bond markets through both a signalling and a portfolio balance channel. While the transmission of both channels is found to be important, the portfolio balance channel appears to be most dominant for eurozone core countries. This finding reveals that unconventional monetary policy announcements by the Fed mainly triggered a flight to safe eurozone government bonds.