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Do central banks affect Tobin's q?

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  • Faria, João Ricardo
  • Mollick, André Varella
  • Sachsida, Adolfo
  • Wang, Le

Abstract

Previous work has documented inflation effects on Tobin's q in the long run. This paper examines whether the FED's different policies and chairmen tenure have an impact on Tobin's q, after a modified stylized AD-AS model shows that central banks affect q. We do find changing responses of q depending on the pre-Volcker and post-Volcker periods.

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Bibliographic Info

Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 22 (2012)
Issue (Month): 1 ()
Pages: 1-10

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Handle: RePEc:eee:reveco:v:22:y:2012:i:1:p:1-10

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Web page: http://www.elsevier.com/locate/inca/620165

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Keywords: Central bank; Tobin's q; U.S. Federal Reserve;

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