Title
Price jumps in developed stock markets: the role of monetary policy committee meetings
Document Type
Article
Publication Date
4-15-2019
Abstract
In this paper, we analyze the jump intensity in the Euro area, Japan, the UK and the US and measure their reactions to the US Federal Reserve meetings together with the country’s own monetary policy meetings. Evidence suggests that the jump intensity in all the markets is highly persistent. Further, the US monetary policy positively impacts the jump intensity in almost all the cases, including in the sub-sample periods found by the structural break test. Moreover, in assessing the joint effects on jump intensities, we find that the US policy dominates the monetary policy of the country itself.
DOI
10.1007/s12197-018-9444-z
Publication Title
Journal of Economics and Finance
Volume Number
43
Issue Number
2
First Page
298
Last Page
312
ISSN
10550925
Recommended Citation
Gupta, Rangan; Lau, Chi Keng Marco; Liu, Ruipeng; and Marfatia, Hardik, "Price jumps in developed stock markets: the role of monetary policy committee meetings" (2019). Economics Faculty Publications. 38.
https://neiudc.neiu.edu/econ-pub/38