IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v59y2023i5p1572-1590.html
   My bibliography  Save this article

Monetary Policies and Financial Stress During the COVID-19 Pandemic: An Event Study Analysis

Author

Listed:
  • Trinh Q. Long
  • Peter J. Morgan

Abstract

Using an event study design, this paper examines the effects of announcements of financial policies, especially monetary policies, on a measure of financial stress in some advanced and emerging economies during the COVID-19 pandemic period. We construct a daily financial stress index for 15 countries during the period from April 1, 2019 to September 30, 2021 . Our results show that announcing financial policies of any type increased financial stress on the day the policy was announced but the effect faded away rather quickly. Moreover, different types of financial policy announcements had different effects on the financial stress subindices. We also find that each component of financial stress responds to the announcement of financial policies differently and announcements of financial policies affect financial stress in most of the countries in our sample, but to different degrees.

Suggested Citation

  • Trinh Q. Long & Peter J. Morgan, 2023. "Monetary Policies and Financial Stress During the COVID-19 Pandemic: An Event Study Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(5), pages 1572-1590, April.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:5:p:1572-1590
    DOI: 10.1080/1540496X.2022.2148462
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2022.2148462
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2022.2148462?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:59:y:2023:i:5:p:1572-1590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.