Kontonikas, Alexandros; MacDonald, Ronald; Saggu, Aman - Department of Economics, Adam Smith Business School - 2012
This paper examines the impact of Federal Funds rate (FFR) surprises on stock returns in the United States over the period 1989-2009, focusing on the impact of the recent financial crisis. We find that prior to the crisis, stock prices increased as a response to unexpected FFR cuts. State...