What Explains the Stock Market's Reaction to Federal Reserve Policy?

By Ben S. Bernanke, Kenneth N. Kuttner. 2005

629 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/4e9b8929621d0a514d973ef5712a487f3ed8f662

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Citations in the corpus

On the Volatility and Comovement of U.S. Financial Markets Around Macroeconomic News Announcements (2009, background): “(2003, 2007), Bomfim (2003), Connolly and Wang (2003), Bernanke and Kuttner (2005), and Boyd et al.”
The impact of the ECB's conventional and unconventional monetary policies on stock markets (2016, methodology): “Pearce and Roley, 1984; Patelis 1997; Thorbecke, 1997; Bernanke and Kuttner, 2005; Ehrmann and Fratzscher, 2004; Chuliá et al., 2010; Kontonikas et al. 2013; Kontonikas and Kostakis, 2013; Unalmis and Unalmis, 2015). Following the event study method of Bernanke and Kuttner (2005), which has been wid”
FISCAL POLICY AND ASSET PRICES (2013, neutral): “2For the e¤ects of monetary policy on stock prices and/or stock returns, see, for instance, Rigobon and Sack (2003), Bernanke and Kuttner (2005), Bordo and Wheelock (2007), and Wongswan (2009).”
Macroeconomic Cycles and the Stock Market's Reaction to Monetary Policy (2008, positive): “Bernanke and Kuttner (2005)”
Divergence of Sentiment and Stock Market Trading (2017, neutral): “These variables are available monthly and follow from Bernanke and Kuttner (2005) and Kontonikas et al. (2015).”
Stock market performance and economic growth Empirical Evidence from Kenya using Causality Test Approach (2011, background): “In another study, Bernanke and Kuttner concluded that very little of the market's reaction can be attributed to the effect of monetary policy on the real rates of interest [7].”
Decomposing real and nominal yield curves (2016, neutral): “, Kuttner (2001) and Bernanke and Kuttner (2005)).”
Stock Market Reaction to Fed Funds Rate Surprises: State Dependence and the Financial Crisis (2013, methodology): “…policy and stock market performance has been extensively studied in the previous literature using a variety of empirical approaches, ranging from vector autoregressive models to event studies (see e.g. Cook and Hahn, 1989; Jensen and Johnson, 1995; Thorbecke, 1997; Bernanke and Kuttner, 2005).”
Appendix: Monetary Policy Drivers of Bond and Equity Risks (2020, positive): “Bernanke and Kuttner (2005) estimate that a one percentage point surprise increase in the policy rate leads to a decrease in equity prices of between 2.5% and 4.6%.”