The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?

This paper estimates the impact of monetary policy on exchange rates and stock prices of eight small open economies: Australia, Canada, the Republic of Korea, New Zealand, the United Kingdom, Indonesia, Malaysia, and Thailand. On average across these countries in the full sample, a one percentage po...

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Main Authors:	Pennings, Steven, Ramayandi, Arief, Tang, Hsiao Chink
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2016
Subjects:	monetary policy exchange rates stock prices economic crisis Asian economies
Online Access:	http://hdl.handle.net/10986/23554

id	okr-10986-23554
recordtype	oai_dc
spelling	okr-10986-235542021-04-23T14:04:16Z The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis? Pennings, Steven Ramayandi, Arief Tang, Hsiao Chink monetary policy exchange rates stock prices economic crisis Asian economies This paper estimates the impact of monetary policy on exchange rates and stock prices of eight small open economies: Australia, Canada, the Republic of Korea, New Zealand, the United Kingdom, Indonesia, Malaysia, and Thailand. On average across these countries in the full sample, a one percentage point surprise rise in official interest rates leads to a 1% appreciation of the exchange rate and a 0.5–1% fall in stock prices, with somewhat stronger effects in OECD countries than non-OECD countries (though differences are sometimes not significant). We find little robust evidence of a change in the effect of monetary policy surprises during the recent financial crisis. 2016-01-04T21:47:40Z 2016-01-04T21:47:40Z 2015-06 Journal Article Journal of Macroeconomics 0164-0704 http://hdl.handle.net/10986/23554 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research Australia Canada Indonesia Korea, Republic of Malaysia New Zealand Thailand United Kingdom
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	monetary policy exchange rates stock prices economic crisis Asian economies
spellingShingle	monetary policy exchange rates stock prices economic crisis Asian economies Pennings, Steven Ramayandi, Arief Tang, Hsiao Chink The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?
geographic_facet	Australia Canada Indonesia Korea, Republic of Malaysia New Zealand Thailand United Kingdom
description	This paper estimates the impact of monetary policy on exchange rates and stock prices of eight small open economies: Australia, Canada, the Republic of Korea, New Zealand, the United Kingdom, Indonesia, Malaysia, and Thailand. On average across these countries in the full sample, a one percentage point surprise rise in official interest rates leads to a 1% appreciation of the exchange rate and a 0.5–1% fall in stock prices, with somewhat stronger effects in OECD countries than non-OECD countries (though differences are sometimes not significant). We find little robust evidence of a change in the effect of monetary policy surprises during the recent financial crisis.
format	Journal Article
author	Pennings, Steven Ramayandi, Arief Tang, Hsiao Chink
author_facet	Pennings, Steven Ramayandi, Arief Tang, Hsiao Chink
author_sort	Pennings, Steven
title	The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?
title_short	The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?
title_full	The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?
title_fullStr	The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?
title_full_unstemmed	The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?
title_sort	impact of monetary policy on financial markets in small open economies : more or less effective during the global financial crisis?
publisher	Elsevier
publishDate	2016
url	http://hdl.handle.net/10986/23554
_version_	1764454265210798080

The Impact of Monetary Policy on Financial Markets in Small Open Economies : More or Less Effective During the Global Financial Crisis?

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