Monetary policy announcements and financial market expectations: the case of Poland

• Autorzy: Radosław Kurach , Jerzy Stelmach
• Języki publikacji: EN

Abstrakty

The influence of monetary policy decisions on the target variables such as inflation, output and employment is not immediate and is characterized by the significant time lags. The numerous studies support this thesis. Mishkin discussed the theory of mechanisms through which monetary policy affects the economy. The empirical results presented by Kokoszczyński et al., Angeloni et al. Show that the dominant channels of monetary policy transmission differs over the countries and have different timing. However the most immediate effects of monetary policy actions can be observed on the financial markets. Hence the central bank tries to affect financial assets prices to achieve the ultimate policy objective(s). In Tobin's q theory and the wealth effects channel monetary policy influences the equity prices. There are two explanations of this fact. The monetarist theory argue that when the money supply rises, the public finds it has more money and try to reduce the holdings of money by increasing their spending. Stock market is the place where the public can spend money, what increases the demand for equities and finally rising their prices. The Keynesian economists explain increased demand for equities by falling interest rates that make bonds less attractive relative to equities. Monetary policy influences also exchange rate. During the monetary expansion when the interest rates fall the domestic deposits become less attractive relative to deposits denominated in foreign currency, causing the deprecation of the domestic currency. However monetary policy operates mostly through the money market(fragment tekstu)

Słowa kluczowe

EN

Fiscal policy; Financial sector; Financial system; Money stock exchange

PL

Polityka fiskalna; Sektor finansowy; System finansowy; Giełda pieniężna

• Czasopismo: Prace Naukowe / Akademia Ekonomiczna w Katowicach
• Rocznik: 2008
• Tom: Metody matematyczne, ekonometryczne i komputerowe w finansach i ubezpieczeniach 2006
• Strony: 253--263

Twórcy

autor

Radosław Kurach

• Uniwersytet Ekonomiczny we Wrocławiu

autor

Jerzy Stelmach

• Uniwersytet Ekonomiczny we Wrocławiu

Bibliografia

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• Bernanke B.S., Blinder A.S.: The Federal Funds Rate And The Channels Of Monetary Transmission. "The American Economic Review" 1992, September
• Bernanke B.S., Kuttner K.N.: What Explains the Stock Market's Reaction to Federal Reserve Policy? Federal Reserve Bank of New York Staff Report 2003, No 174
• Ehrmann M., Fratzscher M.: Taldng Stock Monetary Policy Transmission to Equity Markets. ECB Working Paper Series, Working Paper No 354, Frankfurt am Main 2004
• Fama E.F.: The behavior of stock market prices. "Journal of Business" 1965, Vol. 38
• Kokoszczyński R., Łyziak T., Pawłowska M., Przystupa J., Wróbel E.: Mechanizm transmisji polityki pieniężnej - współczesne ramy teoretyczne, nowe wyniki empiryczne dla Polski. "Materiały i Studia", No 15. NBP, Warszawa 2002a
• Kurach R.: Miara polityki pieniężnej dla Polski w latach 1999-2003. Non Published Master's Thesis, Wrocław 2005
• Mishkin F.S.: The Channels of Monetary Transmission: Lessons for Monetary Policy. NBER Working Paper Series, Working Paper No 5464, Cambridge 1996
• Rudebusch G.D.: Do Measures of Monetary Policy in a VAR Make Sense? "International Economic Review" 1998, No 39
• Serwa D.: Do Emerging Financial Markets React to Monetary Policy Announcements? Evidence from Poland. "Applied Financial Economics" 2006, Vol. 16
• Ziarko-Siwek U.: Ocena efektywności informacyjnej wybranych segmentów rynku finansowego w Polsce. Materiały i Studia NBP, nr 178, Warszawa 2004