Journal of Applied Finance & Banking

The short-term spillover effects of the Fed on Chinese financial market The overshooting model or the portfolio balance theory

  • Pdf Icon [ Download ]
  • Times downloaded: 408
  • Abstract 

    Under the framework of overshooting model and portfolio balance theory, this paper analyses the short-term spillover effect of Fedís QE on asset prices in China. Policy shocks "overall events" have a significant impact on China's financial market. China's debt full price index, Shanghai-Shenzhen 300 and Nan-Hua Futures Composite Index have increased significantly, while the "single event" issuance has no notable impact. Further research shows that the interest rate transmission mechanism has a striking impact on bonds, the exchange rate transmission mechanism has a remarkable impact on stocks, and the expected transmission mechanism has a notable impact on futures. China should comprehensively use interest rate, exchange rate and expected management tools to avoid the accumulation of financial bubbles.

    JEL classification numbers: G11
    Keywords: overshooting model, portfolio balance theory, Fedís QE, Exchange rate channel, Interest rate channel, expectations channel.

sex video full hd free Schoolgirl gets punished rissa2cute dildo
bahis siteleri asyabahis casino siteleri bets10
Website Security Test