Economics at your fingertips  

Does central bank independence affect stock market volatility?

Stephanos Papadamou (), Moise Sidiropoulos and Eleftherios Spyromitros ()

Research in International Business and Finance, 2017, vol. 42, issue C, 855-864

Abstract: This paper addresses the issue of impacts of central banks’ independence on stock market volatility. Using a simple theoretical macroeconomic model, we analytically find a positive link between stock prices volatility and central bank independence. By applying panel data analysis on a set of 29 countries from 1998 to 2005, sufficient evidence for this positive relationship is provided using two different measures of stock market volatility.

Keywords: Central bank independence; Stock market volatility; Panel data (search for similar items in EconPapers)
JEL-codes: E52 E58 G1 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Does Central Bank Independence Affect Stock Market Volatility? (2016) Downloads
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:

DOI: 10.1016/j.ribaf.2017.07.021

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2021-01-25
Handle: RePEc:eee:riibaf:v:42:y:2017:i:c:p:855-864