02172cas a2200301 a 4500 AALejournalIMF022280 230101c9999 xx r poo 0 0eng d 18.00 USD 9781513573502 1018-5941 BD-DhAAL BD-DhAAL Acharya, Viral. COVID-19 Containment Measures and Expected Stock Volatility : High-Frequency Evidence from Selected Advanced Economies / Viral Acharya, Yang Liu, Yunhui Zhao. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (43 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 We study the effect of COVID-19 containment measures on expected stock price volatility in some advanced economies, using event studies with hand-collected minute-level data and panel regressions with daily data. We find that six-month-ahead volatility indices dropped following announcements of initial or re-imposed lockdowns, and that they did not drop significantly following the easing of lockdowns. Such patterns are not as strong for three-month-ahead expected volatility and generally absent for one-month-ahead expected volatility. These results provide suggestive evidence for the existence of an intertemporal trade-off: although stringent containment measures cause short-term economic disruptions, they may reduce medium-term uncertainty (reflected in expected stock volatility) by boosting markets' confidence that the outbreak would be under control more quickly. Mode of access: Internet Foreign Exchange imf Informal Economy imf Underground Econom imf Liu, Yang. Zhao, Yunhui. IMF Working Papers; Working Paper ; No. 2021/157 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/157/001.2021.issue-157-en.xml IMF e-Library