Sebastian Edwards in a new working paper:
In this paper I used high frequency (weekly) data from seven emerging nations -- four in Latin America and three in Asia -- to investigate the extent to which changes in Fed policy interest rates have been transmitted into domestic short term interest rates during the 2000s. The results suggest that there is, indeed, interest rates “pass through” from the Fed to emerging markets. However, the extent of transmission of interest rate shocks is different – in terms of impact, steady state effect, and dynamics – in Latin America and Asia.
Fed actions tend to be fully transmitted into interest rates in the three Asian countries in the sample. In Latin America, on the other hand, the final effect is approximately equal to one half.
He also argues that the effect moves faster to the Asian than to the Latin American countries in the sample. In addition, capital controls are not effective to isolate an emerging economy from changes in the interest rates in the US.
The countries in the study: Brazil, Chile, Colombia, Mexico, Indonesia, Korea, and the Philippines.