IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v55y2019i13p3112-3130.html
   My bibliography  Save this article

The Effect of Monetary and Fiscal Policy on Bond Mutual Funds and Stock Market: An International Comparison

Author

Listed:
  • Fiza Qureshi
  • Habib Hussain Khan
  • Ijaz ur Rehman
  • Saba Qureshi
  • Abdul Ghafoor

Abstract

This study examines the relationship between bond fund flows, stock market returns and financial policies in developed and developing economies. The findings suggest a bidirectional (negative) relationship between bond flows and market returns in the presence of fiscal and monetary policy for developed countries. However, in the case of developing countries, bond flows follow the previous performance of market returns. Moreover, an expansionary monetary stance has a negative impact on bond flows while an expansionary fiscal policy exerts a positive influence on them. In addition, bond funds flourish in times of low economic activity in both developed and developing countries.

Suggested Citation

  • Fiza Qureshi & Habib Hussain Khan & Ijaz ur Rehman & Saba Qureshi & Abdul Ghafoor, 2019. "The Effect of Monetary and Fiscal Policy on Bond Mutual Funds and Stock Market: An International Comparison," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(13), pages 3112-3130, October.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3112-3130
    DOI: 10.1080/1540496X.2018.1535432
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2018.1535432
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2018.1535432?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Behera, Chinmaya & Rath, Badri Narayan & Mishra, Pramod Kumar, 2024. "The impact of monetary and fiscal stimulus on stock returns during the COVID-19 Pandemic," Journal of Asian Economics, Elsevier, vol. 90(C).
    2. Dat Thanh Nguyen & Viet Anh Hoang, 2020. "Monetary Consequences of Fiscal Stress in a Game Theoretic Framework," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 125-164.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:55:y:2019:i:13:p:3112-3130. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.