The Joint Response of Currency and Stock Markets to IMF News During the Pandemic Evidence from Emerging Countries

This article examines the influence of IMF announcements as a source of news on currency and stock markets in the wake of the coronavirus pandemic. We use a set of IMF-related news for a sample of 14 emerging countries from December, 2019 to December, 2020. Our central finding is that IMF news exerts a significant impact that is predominantly related to the mean, rather than the variance, of low corruption emerging countries’ underlying currency and stock markets, and the direction of IMF-impact is dependent on the cross-market spillover effects in the two markets