Monetary policy as market stabilizer in the COVID-19 pandemic.
Financ Res Lett
; 55: 103960, 2023 Jul.
Article
in English
| MEDLINE | ID: covidwho-2319188
ABSTRACT
We categorize expansionary monetary policies based on interest rates, monetary easing, and liquidity decisions. We find that the stock market reacts positively to liquidity policy announcements by a more significant margin during and after the COVID-19 at market and industry levels compared with reactions to interest rate or monetary easing policy announcements. The economic consequences are large and persistent. Using firm characteristics as proxies for monetary policy transmission channels, we find that at firm level, the positive responses to liquidity policy announcements during the crisis are more pronounced for small and medium-sized businesses and non-state-owned enterprises relative to other enterprises.
Full text:
Available
Collection:
International databases
Database:
MEDLINE
Type of study:
Prognostic study
Language:
English
Journal:
Financ Res Lett
Year:
2023
Document Type:
Article
Affiliation country:
J.frl.2023.103960
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