Effect of economic policies on the stock and bond market under the impact of COVID-19
The global epidemic of COVID-19 has made a huge impact on global health and financial markets. And the spread of the virus has stalled economic development in many parts of the world. As stocks and bonds are two important financial assets, how to take appropriate economic policies to restore the sto...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
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KeAi Communications Co., Ltd.
2022-03-01
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| Series: | Journal of Safety Science and Resilience |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666449621000554 |
| _version_ | 1818270572297060352 |
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| author | Feng Liu Deli Kong Zilong Xiao Xiaohui Zhang Aimin Zhou Jiayin Qi |
| author_facet | Feng Liu Deli Kong Zilong Xiao Xiaohui Zhang Aimin Zhou Jiayin Qi |
| author_sort | Feng Liu |
| collection | DOAJ |
| description | The global epidemic of COVID-19 has made a huge impact on global health and financial markets. And the spread of the virus has stalled economic development in many parts of the world. As stocks and bonds are two important financial assets, how to take appropriate economic policies to restore the stock and bond markets is the focus of governments as they are seeking for quick recovery. Based on the Event Study method and the GARCH model, data from 1 October 2019 to 1 April 2020 were collected from 26 countries or regions as analytic samples. The results show: 1) COVID-19 has made greater impacts on the stock market than the bond market; 2) the economic policy responses after the COVID-19 has brought impacts on both of the stock and the bond markets; 3) the monetary policy responses has brought greater volatility to the stock market than the fiscal policy responses, while the fiscal policy responses has brought greater volatility to the bond market than the monetary policy; 4) the fiscal policy has brought more positive effects on the stock market, and monetary policy has brought more positive effects on the bond market. This research is helpful to understand the mechanism of COVID-19’s impacts on the stock and bond market. And it is of great practical significance to the governments’ decisions to make economic policy responses after an epidemic. |
| first_indexed | 2024-12-12T21:12:25Z |
| format | Article |
| id | doaj.art-9cf9353068174729a73e86ce9c700a21 |
| institution | Directory Open Access Journal |
| issn | 2666-4496 |
| language | English |
| last_indexed | 2024-12-12T21:12:25Z |
| publishDate | 2022-03-01 |
| publisher | KeAi Communications Co., Ltd. |
| record_format | Article |
| series | Journal of Safety Science and Resilience |
| spelling | doaj.art-9cf9353068174729a73e86ce9c700a212022-12-22T00:11:52ZengKeAi Communications Co., Ltd.Journal of Safety Science and Resilience2666-44962022-03-01312438Effect of economic policies on the stock and bond market under the impact of COVID-19Feng Liu0Deli Kong1Zilong Xiao2Xiaohui Zhang3Aimin Zhou4Jiayin Qi5School of Computer Science and Technology, East China Normal University, Shanghai 200062, China; Institute of Artificial Intelligence and Change Management, Shanghai University of International Business and Economics, Shanghai 203356, China; Corresponding authors.School of Business and Management, Shanghai International Studies University, Shanghai 201620, ChinaSchool of Data and Computer Science, Sun Yat-Sen University, Guangzhou 528406, China; Qianhai Financial Holdings, Guangzhou 510030, ChinaSchool of Business and Management, Shanghai International Studies University, Shanghai 201620, ChinaSchool of Computer Science and Technology, East China Normal University, Shanghai 200062, China; Corresponding authors.Institute of Artificial Intelligence and Change Management, Shanghai University of International Business and Economics, Shanghai 203356, China; Corresponding authors.The global epidemic of COVID-19 has made a huge impact on global health and financial markets. And the spread of the virus has stalled economic development in many parts of the world. As stocks and bonds are two important financial assets, how to take appropriate economic policies to restore the stock and bond markets is the focus of governments as they are seeking for quick recovery. Based on the Event Study method and the GARCH model, data from 1 October 2019 to 1 April 2020 were collected from 26 countries or regions as analytic samples. The results show: 1) COVID-19 has made greater impacts on the stock market than the bond market; 2) the economic policy responses after the COVID-19 has brought impacts on both of the stock and the bond markets; 3) the monetary policy responses has brought greater volatility to the stock market than the fiscal policy responses, while the fiscal policy responses has brought greater volatility to the bond market than the monetary policy; 4) the fiscal policy has brought more positive effects on the stock market, and monetary policy has brought more positive effects on the bond market. This research is helpful to understand the mechanism of COVID-19’s impacts on the stock and bond market. And it is of great practical significance to the governments’ decisions to make economic policy responses after an epidemic.http://www.sciencedirect.com/science/article/pii/S2666449621000554COVID-19 epidemicEvent study methodGlobal stock and bond marketReturn and volatility |
| spellingShingle | Feng Liu Deli Kong Zilong Xiao Xiaohui Zhang Aimin Zhou Jiayin Qi Effect of economic policies on the stock and bond market under the impact of COVID-19 Journal of Safety Science and Resilience COVID-19 epidemic Event study method Global stock and bond market Return and volatility |
| title | Effect of economic policies on the stock and bond market under the impact of COVID-19 |
| title_full | Effect of economic policies on the stock and bond market under the impact of COVID-19 |
| title_fullStr | Effect of economic policies on the stock and bond market under the impact of COVID-19 |
| title_full_unstemmed | Effect of economic policies on the stock and bond market under the impact of COVID-19 |
| title_short | Effect of economic policies on the stock and bond market under the impact of COVID-19 |
| title_sort | effect of economic policies on the stock and bond market under the impact of covid 19 |
| topic | COVID-19 epidemic Event study method Global stock and bond market Return and volatility |
| url | http://www.sciencedirect.com/science/article/pii/S2666449621000554 |
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