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Working Paper/Document de travail 2014-43 International Transmission Channels of U.S. Quantitative Easing: Evidence from Canada by Tatjana Dahlhaus, Kristina Hess and Abeer Reza Bank of Canada Working Paper 2014-43 September 2014 International Transmission Channels of U.S. Quantitative Easing: Evidence from Canada by Tatjana Dahlhaus, Kristina Hess and Abeer Reza International Economic Analysis Department Bank of Canada Ottawa, Ontario, Canada K1A 0G9 Corresponding author: reza@bankofcanada.ca Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada. 2 ISSN 1701-9397 © 2014 Bank of Canada Acknowledgements We thank Christiane Baumeister, Jean-Philippe Cayen, Michael Ehrmann, Robert Lavigne, Eric Santor, and seminar participants at the Bank of Canada, the 48th Annual Conference of the Canadian Economic Association, and the International Association for Applied Econometrics 2014 Annual Conference for helpful comments and suggestions. All errors and omissions are our own. ii Abstract The U.S. Federal Reserve responded to the great recession by reducing policy rates to the effective lower bound. In order to provide further monetary stimulus, they subsequently conducted large-scale asset purchases, quadr