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Classical theories of monetary economics predict that real stock returns are negatively correlated with inflation when monetary policy is countercyclical. Previous empirical studies mostly focus on a small group of developed countries or a few countries with hyperinflation. In this paper, I...
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We examine how monetary policy of the Federal Reserve System, COVID-19 mortality cases, and vaccinations are associated … with the US stock market volatility during the pandemic period. Using the wavelet coherence analysis, we first find that … there is a positive relationship between the volatility and death tolls. Second, while in the short term the sizable …
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the bond market and its volatility; (2) the first two announcements did not exert any impact on the financial market, but … the third and fourth announcements helped to compress the yield and its volatility; (3) the program helped to restrain the … exchange rate depreciation and volatility in the foreign exchange market; and (4) the impact of the announcements on stock …
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This paper investigates the impact of monetary policy announcements on the performance of the stock market in twenty countries (10 Developed and 10 developing). Exchange rate changes and changes in bond yield were taken as control. Daily basis Panel data was used with daily frequency for five...
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