Author : Ms.Prachi Mishra
Publisher : International Monetary Fund
ISBN 13 : 1498384544
Total Pages : 34 pages
Book Rating : 4.4/5 (983 download)
Book Synopsis Impact of Fed Tapering Announcements on Emerging Markets by : Ms.Prachi Mishra
Download or read book Impact of Fed Tapering Announcements on Emerging Markets written by Ms.Prachi Mishra and published by International Monetary Fund. This book was released on 2014-06-17 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes market reactions to the 2013–14 Fed announcements relating to tapering of asset purchases and their relationship to macroeconomic fundamentals and country economic and financial structures. The study uses daily data on exchange rates, government bond yields, and stock prices for 21 emerging markets. It finds evidence of markets differentiating across countries around volatile episodes. Countries with stronger macroeconomic fundamentals, deeper financial markets, and a tighter macroprudential policy stance in the run-up to the tapering announcements experienced smaller currency depreciations and smaller increases in government bond yields. At the same time, there was less differentiation in the behavior of stock prices based on fundamentals.