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No Pain, No Gain: Australia, Uk, And Us Stock Market Responses To The 2020 Stimulus Efforts, Jett Zeimantz
No Pain, No Gain: Australia, Uk, And Us Stock Market Responses To The 2020 Stimulus Efforts, Jett Zeimantz
CMC Senior Theses
The stock market shocks of 2020 caused by the COVID-19 crisis have been met by monetary policy announcements rapidly issued by the central banks of developed economies, signaling a concerted effort to keep markets afloat. Utilizing an ordinary least squares regression, this paper tests whether the monetary policy announcements of the central banks of the United States, Australia, and the United Kingdom served their intended purpose in soothing market reactions via high-frequency event data. For the overall stock market, I find that the Federal Reserve’s announcements boosted market returns of the S&P 500 Index by 4.2%, the All Ordinaries Index …