Ehrmann, Michael (contributor); … - 2006
The paper shows that US monetary policy has been an important determinant of global equity markets. Analysing 50 equity … markets worldwide, we find that returns fall on average around 3.8% in response to a 100 basis point tightening of US monetary … policy, ranging from a zero response in some to a reaction of 10% or more in other countries, as well as significant cross …