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Macroeconomic Policies Interaction & the Symmetry of Financial Markets’ Responses

Author

Listed:
  • Muhammad Ali Nasir

    (Faculty of Business & Law, Leeds Beckett University, LS1 3HS, UK)

  • Alaa M. Soliman

    (Faculty of Business & Law, Leeds Beckett University, LS1 3HS, UK)

  • Milton Yago

    (Faculty of Business & Law, Leeds Beckett University, LS1 3HS, UK)

  • Junjie Wu

    (Faculty of Business & Law, Leeds Beckett University, LS1 3HS, UK)

Abstract

This concise study analyses the symmetry of financial markets` responses to macroeconomic policy interaction in the United Kingdom. Employing the Vector Auto-regression (VAR) model on monthly data of the British financial sector and macroeconomic policies from January 1985 to August 2008, this study found that the equity and sovereign debt markets showed identical symmetry in response to macroeconomic policy interaction.

Suggested Citation

  • Muhammad Ali Nasir & Alaa M. Soliman & Milton Yago & Junjie Wu, 2016. "Macroeconomic Policies Interaction & the Symmetry of Financial Markets’ Responses," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 5(1), pages 53-69.
    • Handle: RePEc:cbk:journl:v:5:y:2016:i:1:p:53-69
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Ali Nasir & Min Du, 2018. "Integration of Financial Markets in Post Global Financial Crises and Implications for British Financial Sector: Analysis Based on A Panel VAR Model," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(2), pages 363-388, June.

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    More about this item

    Keywords

    Financial Markets; Macroeconomic Policy Interaction; Symmetry of financial markets responses;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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