The Relationship of Monetary and Fiscal Policy Credibility with the Stock Market Volatility in a Developing Country-Reference-Cited by-同舟云学术

The Relationship of Monetary and Fiscal Policy Credibility with the Stock Market Volatility in a Developing Country

Published:2021-01-19 Issue: Volume: Page:097215092098251
ISSN:0972-1509
Container-title:Global Business Review
language:en
Short-container-title:Global Business Review

Author:

Magnani Vinícius Medeiros¹,Caluz Antonio Daniel Ricardo²,Gatsios Rafael Confetti¹^ORCID,Lima Fabiano Guasti¹

Affiliation:

1. Accounting Department, School of Economics, Business Administration and Accounting, University of São Paulo, Ribeirão Preto, São Paulo, Brazil.

2. INSPER, Rua Quatá, São Paulo, Brazil.

Abstract

The present study aims to analyse the relationship between fiscal and monetary credibility and the volatility of the Brazilian stock market index, Ibovespa. The results demonstrate that the greater the credibility of the target imposed by the Brazilian Central Bank, the more predictable and stable are the macroeconomic variables and the greater the confidence of economic agents in the Brazilian stock market. We can conclude that the greater the fiscal and monetary credibility, the better is the performance of the stock market.

Publisher

SAGE Publications

Subject

Business and International Management

Link

http://journals.sagepub.com/doi/pdf/10.1177/0972150920982513

Reference25 articles.

1. Can Fiscal Policy Stimulus Boost Economic Recovery?

2. FISCAL POLICY AND ASSET PRICES

3. Macroeconomic Determinants of Volatility for the Gold Price in Ethiopia: The Application of GARCH and EWMA Volatility Models

4. Policy News and Stock Market Volatility

5. Policy credibility and alternative approaches to disinflation

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