) operation. In our experiment, the bonds are perfect substitutes for cash and have a constant fundamental value which is not …

design a laboratory experiment to test our theoretical predictions against the behaviors of human subjects. Short …

We explore the role of monetary policy in a world of segmented financial markets, where only the agents who trade … addition, our model suggests that optimal monetary policy is not concerned with stock price volatility, does not attempt to …, producing lower inflation volatility when compared to the constant money supply policy rule …

daily S&P500, the US Treasury Bond Index (USTB), the S&P Green Bond Index (GREEN) and the Dow Jones (DJ) Islamic World …

This paper explores the effects of nominal volatility and limited participation in asset markets on the risk sharing … available for investment, limited participation and nominal volatility can generate an inefficiently small number of financial … assets. A monetary rule, such as a fixed exchange rate or monetary union, that reduces nominal volatility can foster the …

An unanticipated tightening of monetary policy increases option implied volatility in equity and bond markets. At the … same time, realized volatility declines over the period corresponding to the increase in option implied volatility. The … result is a decrease in the volatility swap return, defined as a forward contract on the realized volatility of an underlying …

link between monetary policy rate uncertainty and equity return volatility, both in theory and data. This paper uses … for equity variance and volatility at weekly, monthly and even quarterly horizons. The findings imply that market views of …