Taiwan’s central bank produces tightening or easing effects by controlling the rediscount rate, which indirectly affects the stock market. An exchange-traded fund (ETF) is a fund that tracks the stock market index. ETF’s effect on trading involves not only the trading volume brought by ETF trading but also the various ETF trading strategies and the...
Published in Annual Review of Financial Economics
In this article, we summarize empirical research on the interaction between monetary policy and asset markets and review our previous theoretical work that captures these interactions. We present a concise model in which monetary policy impacts the aggregate asset price, which in turn influences economic activity with lags. In this context, the fol...
Published in Annual Review of Financial Economics
We survey the growing literature emphasizing the role that supply and demand forces play in shaping the term structure of interest rates. Our starting point is the Vayanos and Vila model of the term structure of default-free bond yields, which we present in both discrete and continuous time. The key friction in the model is that the bond market is ...
Mozambique's economy has been severely impacted by high sovereign debt levels and persistent currency depreciation. The debt-to-GDP ratio exceeds 100%, significantly constraining fiscal space and raising concerns about the country's economic stability. This article analyzes the effects of sovereign debt and currency depreciation on Mozambique's mac...
This article explores the impact of central bank interventions on liquidity management in Mozambique during periods of economic volatility. It analyzes how the Bank of Mozambique utilizes reserve requirement adjustments, liquidity injections, and open market operations to stabilize the financial system. Drawing on qualitative research, including de...
Interactions between monetary and macroprudential policy are crucial in safeguarding price and financial stability. This study investigates the macroeconomic and financial impacts of monetary and macroprudential policy interactions in South Africa, a leading African economy in developing macroprudential frameworks. The existing literature largely f...
Monetary policy has an impact on CO2 emissions which is not entirely understood in the literature. Whereas there is a consensus that the impact is indirect through investments, the literature does not investigate the impact of monetary policy on (green) investments. Additionally, we argue in this paper that monetary policy can have a different impa...
The COVID-19 pandemic was a health, economic, and financial crisis. The aviation sector was one of the most severely hit. Despite the extensive literature on this, COVID-Finance has been focused on stock returns, neglecting what could be learnt from the spreads of airlines’ credit default swaps (CDSs). This would seem of the utmost importance, give...
Cash holdings are vital for a firm’s resilience and ability to capitalize on investment opportunities amid economic fluctuations. In this study, the complex relationship between macroeconomic cycles, government policies, and the cash holdings of Chinese listed firms is investigated. By analyzing data from Shanghai and Shenzhen A-share listed firms ...
This study examined South Africa’s economic growth rate from 1980 to 2022 through an econometric analysis of fiscal and monetary policies. The study sought to investigate the relationships between the economy’s growth rate and various fiscal and monetary policy variables, taking into account different economic approaches such as Keynesian, monetari...
