The transmission of Federal Reserve tapering news to emerging financial markets

Joshua Aizenman, Mahir Binici, Michael M Hutchison 04 April 2014

a

A

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.

a

A

Topics:  Exchange rates International finance Monetary policy

Tags:  exchange rates, Federal Reserve, asset prices, emerging markets, stock markets, Credit Default Swaps, tapering

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

Guntram Wolff 30 October 2011

a

A

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. If that view is correct, then the right approach to solving Europe’s banking problem is to solve the sovereign debt crisis. Recapitalising banks instead would be far too costly, in particular if one wanted to cater for a haircut in Italy.

a

A

Topics:  EU policies Financial markets International finance

Tags:  eurozone, stock markets, Eurozone crisis, sovereign bonds

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

Christoph Moser, Andrew K Rose,

Date Published

Mon, 09/12/2011

a

A

Show in Editors Choice Box?

0

Display Order

0

Topics

Financial markets International trade

Partners

CEPR Vox

URL

www.cepr.org/DP8566

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 website.

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

Home Page

Display Order

-10

cepr_featured

1
Tags
stock markets, regional trade agreements, gains from trade

Stock market wealth effects in emerging market countries

Heiko Hesse 16 October 2008

a

A

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. Financial assets play a significant role in peoples’ permanent (life-cycle), income so changes in the stock market could have an effect on private consumption expenditure.

a

A

Topics:  Financial markets

Tags:  wealth, emerging markets, stock markets

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

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

a

A

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. In particular, academics and practitioners are interested in discovering whether or not the high returns on stock markets over the past half-century are an aberration or are somehow intrinsic to equity as an asset.

a

A

Topics:  Financial markets

Tags:  equity, risk premium, UK, stock markets