Unforeseen Events Wait Lurking: Estimating Policy Spillovers from U.S. To Foreign Asset Prices

46 Pages Posted: 16 Aug 2011

See all articles by Tamim Bayoumi

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Trung Thanh Bui

Wells Fargo Bank

Date Written: August 2011

Abstract

Event studies are used to analyze the impact of U.S. financial, fiscal, and monetary policies from US to foreign asset prices across a range of G20 countries and Switzerland. The initial announcement that the Administration supported tighter regulation of banks led to a generalized fall in advanced economy bank shares compared to local equity markets. For later Dodd-Frank announcements, however, falls in U.S. bank equity prices were accompanied by increases in U.K. and Swiss valuations, implying a potential for regulatory arbitrage. Turning to macro policies, the 2008/9 fiscal and monetary stimulus packages generally supported foreign activity, while the impact of similar stimulus in 2010 is less clear.

Suggested Citation

Bayoumi, Tamim and Bui, Trung Thanh, Unforeseen Events Wait Lurking: Estimating Policy Spillovers from U.S. To Foreign Asset Prices (August 2011). IMF Working Papers, Vol. , pp. 1-45, 2011. Available at SSRN: https://ssrn.com/abstract=1910486

Tamim Bayoumi

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6333 (Phone)
202-623-4795 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Trung Thanh Bui

Wells Fargo Bank ( email )

1750 H St NW
6th Fl
Washington, DC 20006
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
62
Abstract Views
414
rank
363,621
PlumX Metrics