Federal Reserve policy and information flow
Article Abstract:
The effect of changes in the relevant Federal Reserve policy tool on the stock market has been investigated. The changes in policies on the federal funds rate during periods of interest rate targeting and the discount rate during periods of reserve targeting from 1974 and 1996 were investigated. The results showed that market equity returns are inversely related to changes in relevant interest rate. It was shown that the market still reacts to Federal Reserve announcements, indicating that these policies contain information not embedded in the prices of the stocks.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1998
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The London International Stock Exchange's foreign currency exposures to the dollar, yen and mark
Article Abstract:
United States, Japan and Germany's foreign exchange rate exposure of investments were examined between 1982 to 1991 revealed either gains or losses. The period of study considered special events like the 1985 Plaza and 1987 Louvre Accords, 1986 London market "Big Bang" and the 1987 worldwide stock fall. Exposure was low for all countries during the Plaza Accord while no marked changes was evident during the Louvre Accord. However, the 1987 stock market fall lowered much of US exposure in contrast to a very high German exposure.
Publication Name: Managerial Finance
Subject: Business
ISSN: 0307-4358
Year: 1997
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- Abstracts: Seasonalities and intraday return patterns in the foreign currency futures market. Public information arrival and volatility of intraday stock returns
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