The transmission of Federal Reserve tapering news to emerging financial markets

Joshua Aizenman, Mahir Binici, Michael M Hutchison, 4 April 2014



The quantitative easing (QE) policies of the US Federal Reserve in the years following the crisis of 2008–2009 included monthly securities purchases of long-term Treasury bonds and mortgage-backed securities totalling $85 billion in 2013. The cumulative outcome of these policies has been an unprecedented increase of the monetary base, mitigating the deflationary pressure of the crisis.

Topics: Exchange rates, International finance, Monetary policy
Tags: asset prices, Credit Default Swaps, emerging markets, exchange rates, Federal Reserve, stock markets, tapering

Is the recent bank stress really driven by the sovereign debt crisis?

Guntram Wolff, 30 October 2011



Stress in the interbank market has increased significantly since July (Figure 1). There is now a significant debate on why this is the case and what would be the best way to address it (Financial Times 2011).1 Many have argued that the sovereign debt crisis isthe most important driver of banking stress in the Eurozone.

Topics: EU policies, Financial markets, International finance
Tags: eurozone, Eurozone crisis, sovereign bonds, stock markets

Who Benefits from Regional Trade Agreements? The View from the Stock Market

Christoph Moser, Andrew K Rose, 12 September 2011

Vox readers can download CEPR Discussion Paper 8566 for free here. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR 

Journalists are entitled to free DP downloads on request; please contact To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Topics: Financial markets, International trade
Tags: gains from trade, regional trade agreements, stock markets

Stock market wealth effects in emerging market countries

Heiko Hesse, 16 October 2008



There are a few channels through which asset price changes affect consumption. For instance, consumption depends on peoples’ expectations of wage income and equity price increases can signal higher income growth.

Topics: Financial markets
Tags: emerging markets, stock markets, wealth

Has equity always earned a premium? Evidence from nineteenth-century Britain

John Turner , Graeme Acheson , Charles Hickson, Qing Ye, 10 May 2008



Financial economists have become increasingly interested in the historical returns of financial assets.1 This interest largely stems from a desire to calculate the expected equity risk premium.

Topics: Financial markets
Tags: equity, risk premium, stock markets, UK

Vox eBooks

CEPR Policy Research