Series: IMF Working Papers
Author(s): Luc Laeven , and Hui Tong
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 December 2010
Keywords: monetary transmission, financial constraints, asset allocation, financial dependence, stock prices, monetary shocks, stock market, Financial Markets and the Macroeconomy, Financial Aspects of Economic Integration,
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) followin...