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Journal of Central Banking Theory and Practice

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Macroeconomic Policies Interaction & the Symmetry of Financial Markets’ Responses

Muhammad Ali Nasir / Alaa M. Soliman / Milton Yago / Junjie Wu
Published Online: 2016-01-26 | DOI: https://doi.org/10.1515/jcbtp-2016-0003


This concise study analyses the symmetry of financial markets’ responses to macroeconomic policy interaction in the United Kingdom. Employing the Vector Auto-regression (VAR) model on monthly data of the British financial sector and macroeconomic policies from January 1985 to August 2008, this study found that the equity and sovereign debt markets showed identical symmetry in response to macroeconomic policy interaction.

Keywords: Financial Markets; Macroeconomic Policy Interaction; Symmetry of financial markets responses

JEL Classification:: E44; E61; G12; G18


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About the article

Published Online: 2016-01-26

Published in Print: 2016-01-01

Citation Information: Journal of Central Banking Theory and Practice, Volume 5, Issue 1, Pages 53–69, ISSN (Online) 2336-9205, DOI: https://doi.org/10.1515/jcbtp-2016-0003.

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© 2016 Central Bank of Montenegro. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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