International Financial Markets and Monetary Policy

• Other Authors: Czudaj, Robert (Editor)
• Format: Electronic Book Chapter
• Language: English
• Published: Basel MDPI - Multidisciplinary Digital Publishing Institute 2023
• Subjects: Economics, finance, business & management; Taylor rule fundamentals; exchange rate; out-of-sample; forecast; random walk; directional accuracy; financial crisis; twin deficit hypothesis; budget balance; current account balance; MENA region; oil countries; non-oil countries; PVAR modeling; financial-crisis; South-East Asia; event driven; fund performance; efficient market hypothesis; adaptive market hypothesis; behavioral finance; market conditions; Markov switching model; threshold VAR; global inflation; inflation; financial global; finance liquidity; commodity; BRVM; WAEMU; regional stock exchange; economic growth; developing countries; currency; export; stock returns; triple regime-switching model; Vietnam; TASI; unit root; granger causality; sectoral indices; Sharia investment; Jakarta Islamic Index (JKII) price; loss risk; geometric Brownian motion; Value at Risk; exchange; exchange theory; money; money theory; power; financial inclusion; commercial banks; financial services; profitability; financial leverage; Jordan; cryptocurrency; blockchain; survival function; risk; weight; hazard ratio; commodity price shocks; banking sector stability; panel data; Africa; time series; vector autoregressiion; pandemic; COVID-19; unemployment rate
• Online Access: DOAB: download the publication; DOAB: description of the publication

The global financial crisis plunged the global economy into a great recession. Many central banks responded with unconventional monetary policies such as quantitative easing, negative policy rates, and forward guidance to calm down financial markets. The COVID-19 pandemic led the global economy, financial markets, and central banks to face even more severe problems. Central banks set up further asset purchase programmes to complement existing unconventional monetary policy measures that have already been in place to help the economy to absorb the COVID-19 shock. The new crisis has increased the importance of preserving financial stability through the international cooperation of central banks around the globe. Managing the expectations of market participants plays a crucial role in the context of financial stability. Therefore, the aim of this Special Issue is to disseminate important empirical and theoretical research questions concerning the connection between monetary policy and international financial markets and to stimulate discussion among academics and policymakers. A special focus is devoted to emerging and developing economies. The Special Issue covers several different articles on a variety of topics from the fields of monetary policy and international financial markets. The contributions address research questions on exchange rates, cryptocurrencies, stock markets, the connection between money supply and inflation after the COVID-19 pandemic, the role of commodity price shocks for banking system stability in developing countries, global liquidity effects, the twin deficit, and the Taylor rule.