The Joint Response of Currency and Stock Markets to IMF News During the Coronavirus Pandemic

This article examines the influence of IMF announcements as a source of news on currency and stock markets in the wake of the coronavirus pandemic. We use a set of IMF-related news for a sample of countries during the pandemic. Our central finding is that IMF news exerts a significant impact that is predominantly concentrated in the low corruption countries during the pandemic, but the direction of the IMF-impact is dependent on the choice of model specification as well as the cross-market spillover effects