Monetary policy velocity and its financial effects: an empirical analysis for an emerging economy
Ricardo Ramalhete Moreira ()
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Ricardo Ramalhete Moreira: Federal University of Esp?rito Santo (Brazil)
PSL Quarterly Review, 2019, vol. 72, issue 291, 279-295
We contribute to the literature of monetary policy evaluation by proposing a concept and a measurement process of monetary policy velocity. Furthermore, we develop a theoretical model explaining how changes in such a velocity index are accompanied by effects in stock prices. Based on the case of Brazil?s economy from February 2003 to December 2016, our empirical findings indicate that the Brazilian Central Bank robustly affected the domestic stock market level by adjusting monetary policy velocity over time, although such effects were performed in asymmetric ways.
Keywords: monetary policy velocity; stock market; GMM; MS-regression; Brazil (search for similar items in EconPapers)
JEL-codes: E43 E52 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:psl:pslqrr:2019:43
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