The Impact of Conventional and Unconventional Monetary Policy on Investor Sentiment

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Resumé

This paper examines the relationship between monetary policy and investor sentiment across conventional and unconventional monetary policy regimes. During conventional times, we find that a surprise decrease in the fed funds rate leads to a large increase in investor sentiment. Similarly, when the fed funds rate is at its zero lower bound, research results indicate that expansionary unconventional monetary policy shocks also have a large and positive impact on investor mood. Together, our findings highlight the importance of both conventional and unconventional monetary policy in the determination of investor sentiment.
OriginalsprogEngelsk
TidsskriftJournal of Banking & Finance
Vol/bind61
Sider (fra-til)89-105
Antal sider17
ISSN0378-4266
DOI
StatusUdgivet - dec. 2015

Emneord

  • Monetary policy
  • Unconventional monetary policy
  • Investor sentiment

Citer dette

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The Impact of Conventional and Unconventional Monetary Policy on Investor Sentiment. / Lutz, Chandler.

I: Journal of Banking & Finance, Bind 61, 12.2015, s. 89-105.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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