Effect of economic policies on the stock and bond market under the impact of COVID-19.

ABSTRACT: The global epidemic of COVID-19 has made a huge impact on global health and financial markets. And the spread of the virus has stalled economic development in many parts of the world. As stocks and bonds are two important financial assets, how to take appropriate economic policies to restore the stock and bond markets is the focus of governments as they are seeking for quick recovery. Based on the Event Study method and the GARCH model, data from 1 October 2019 to 1 April 2020 were collected from 26 countries or regions as analytic samples. The results show: 1) COVID-19 has made greater impacts on the stock market than the bond market; 2) the economic policy responses after the COVID-19 has brought impacts on both of the stock and the bond markets; 3) the monetary policy responses has brou

SUBMITTER: Liu F 

PROVIDER: S-EPMC8556069 | biostudies-literature | 2022 Mar

REPOSITORIES: biostudies-literature