01971cas a2200301 a 4500 AALejournalIMF021429 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513564753 1018-5941 BD-DhAAL BD-DhAAL Chan-Lau, Jorge. Hang in There : Stock Market Reactions to Withdrawals of COVID-19 Stimulus Measures / Jorge Chan-Lau, Yunhui Zhao. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The COVID-19 pandemic prompted unprecedented economic stimulus worldwide. We empirically examine the impact of a withdrawal of fiscal stimulus policies on the stock markets. After constructing a database of withdrawal events, we use event study analysis and cross-country regressions to assess the difference between the pre- and post-event stock price returns. We find that markets react negatively to premature withdrawals-defined as withdrawals at a time when the daily COVID cases are high relative to their historical average-likely reflecting concerns about the withdrawal impact on the prospects for economic recovery. The design of a successful exit strategy from COVID-19 policy responses should account for these concerns. Mode of access: Internet COVID-19 imf Event Study imf Exit Strategy imf Stock Prices imf Zhao, Yunhui. IMF Working Papers; Working Paper ; No. 2020/285 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/285/001.2020.issue-285-en.xml IMF e-Library