Unconventional economic policies and sentiment

An international assessment

Datos Bibliográficos

ID21543675
AutoresMarie‐Helene Gagnon (Department of Finance, Insurance and Real Estate FSA Faculty of Business Administration Université Laval Quebec QC Canada), Céline Gimet (0000-0003-1278-9347, Institut d'Études Politiques d'Aix‐en‐Provence Aix‐en‐Provence France, autor de correspondencia)
Año2020
Volumen43
Número6
Páginas1544-1591
Fecha de publicación2020-06-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaWorld Economy (JOURNAL)
Identificadores de la revistaISSN: 0378-5920 • E-ISSN: 1467-9701
EditorialWiley (PUBLISHER • GB)
DOI10.1111/twec.12916
OpenAlexW2891121336
IdiomaEN
Referencias citadas69

This paper estimates, using Bayesian and global VARs, the spillover effects of unconventional fiscal and monetary policies implemented in the United States and in the Eurozone during the last decade. Consumer confidence and investor sentiment indicators are introduced in the models in order to highlight the signalling channel in the responses to economic policy innovations in times of crisis. Our results reveal that consumer and investor perceptions of innovative economic measures are relevant to study the pass‐through of economic policies to the real sector in times of crisis and zero lower bound interest rates. In particular, the signalling channel plays an important role in successful unconventional economic policies. Moreover, if unconventional economic policies have an impact abroad, the effects are similar to those measured in the domestic country/region. Consequently, coordination and transparency are a prerequisite for ensuring short‐term growth after a global financial crisis

Consumer confidence index · Economic recovery · Economics · Financial crisis · International economics · Macroeconomics · Monetary economics · Monetary policy · Spillover effect · Zero lower bound · Energy, Environment, Economic Growth · Market Dynamics and Volatility · Monetary Policy and Economic Impact · Finance