Polityka pieniężna Fed a koniunktura na rynkach akcji w dobie pandemii Covid-19

Eryk Łon

doi:10.56583/frp.642

Published : 2021-06-30

No. 14 (2021)

Fed’s monetary policy and the situation on the stock markets in the time of coronavirus

Eryk Łon

https://orcid.org/0000-0002-9501-3706

DOI: https://doi.org/10.56583/frp.642

Abstract

The article examines the links between the Fed’s monetary policy and the situation in the stock markets. The research was conducted both on the example of the US stock indices and on equity markets outside the US. The impact of the Fed’s monetary policy on the economic situation in the equity markets of developed and emerging countries was examined. It turned out that it is worth investing in the stock markets in the period of the Fed’s soft monetary policy. This policy affects not only the stock indices in the US stock markets, but also affects the stock indices of developed and emerging countries. The nature and strength of the Fed’s monetary policy can be
measured by the so-called the monetary policy easing index. The monetary policy easing index determines the number of days in a given year with easing conditions. It is calculated as a percentage. The period between the “first cut” of the FED interest rate and the “first hike” of this rate is the period of expansionary monetary conditions, and the period between the “first hike” and the “first cut” is the period of restrictive monetary conditions. The positive impact of the Fed’s ultra-soft monetary policy on selected markets of developed and emerging countries in the time of the coronavirus pandemic has been reported. There was also a very positive impact of this policy on selected commodity markets.

Keywords:

monetary policy, stock market, developed and emerging markets

Fed’s monetary policy and the situation on the stock markets in the time of coronavirus

Eryk Łon

Abstract

Keywords:

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