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Effectiveness of monetary policies in OECD countries

Author

Listed:
  • Ahmet UGUR

    (Inonu University, Malatya, Turkey)

  • Canan SANCAR

    (Gumuşhane University, Turkey)

  • Yusuf Ekrem AKBAŞ

    (Adıyaman University, Turkey)

Abstract

In this study, it was analysed whether monetary policies have an effect on stock price index in 13 OECD countries (Australia, Canada, Denmark, Iceland, Japan, Korea, New Zealand, Norway, Poland, Sweden, Switzerland, the United Kingdom and the United States) with High Income Level for the period after 2008 financial crisis (2010-2013). In the analysis results, it was determined that there is a unidirectional relationship from short term interest rates and M1 money supply towards stock price indexes; and a unidirectional relationship from stock price index towards interbank interest rates and M3 money supply. In this respect, it was concluded that effectiveness of monetary policies in 13 OECD countries with high-income level are weak after 2008 financial crisis.

Suggested Citation

  • Ahmet UGUR & Canan SANCAR & Yusuf Ekrem AKBAŞ, 2016. "Effectiveness of monetary policies in OECD countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(609), W), pages 75-88, Winter.
    • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:4(609):p:75-88
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    References listed on IDEAS

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    2. Dedola, Luca & Lippi, Francesco, 2005. "The monetary transmission mechanism: Evidence from the industries of five OECD countries," European Economic Review, Elsevier, vol. 49(6), pages 1543-1569, August.
    3. J. Benson Durham, 2001. "The effect of monetary policy on monthly and quarterly stock market returns: cross-country evidence and sensitivity analyses," Finance and Economics Discussion Series 2001-42, Board of Governors of the Federal Reserve System (U.S.).
    4. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
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