IMF: global stock markets sensitive to US monetary policy shocks
An IMF paper published on Monday shows global stock prices respond strongly to unexpected monetary policy changes in the United States.
Luc Laeven and Hui Tong, the paper's authors, use a dataset of 20,121 firms across 44 countries from 1990 to 2008 to measure global stock price responses to US policy shocks.
Laeven and Hui find that stock prices tend to increase following an unexpected monetary loosening and decrease during a monetary contraction, with the impact most pronounced in sectors that
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