Oil, Equities, and a "Nonbinding" Zero Lower Bound: The Monetary Policy Response to COVID-19

Deepa Datta, Benjamin K. Johannsen and Robert Vigfusson
Additional contact information
Benjamin K. Johannsen: https://www.federalreserve.gov/econres/benjamin-k-johannsen.htm

No 2021-04-14, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We analyze the recent behavior of oil and equity prices in the context of our earlier work, Datta, et al. (2021), which focuses on the previous zero lower bound (ZLB) episode, in the aftermath of the Global Financial Crisis. We find that the correlation between oil and equity returns and the responsiveness of these returns to macroeconomic surprises are perhaps elevated relative to normal times but somewhat moderated relative to the previous ZLB episode.

Date: 2021-04-14
New Economics Papers: this item is included in nep-cba, nep-ene and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.federalreserve.gov/econres/notes/feds- ... ovid-19-20210414.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2021-04-14

DOI: 10.17016/2380-7172.2786

Access Statistics for this paper

More papers in FEDS Notes from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().