U.S. Monetary Shocks and Global Stock Prices /

This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for secto...

Szczegółowa specyfikacja

Opis bibliograficzny
1. autor: Laeven, Luc
Kolejni autorzy: Tong, Hui
Format: Czasopismo
Język:English
Wydane: Washington, D.C. : International Monetary Fund, 2010.
Seria:IMF Working Papers; Working Paper ; No. 2010/278
Dostęp online:Full text available on IMF
Opis
Streszczenie:This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for sectors that depend on external financing, and for countries that are more integrated with the global financial market. These findings suggest that financial frictions play an important role in the transmission of monetary policy, and that U.S. monetary policy influences global capital allocation.
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Opis fizyczny:1 online resource (28 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Ograniczenie dostępu:Electronic access restricted to authorized BRAC University faculty, staff and students