UNDERSTANDING MARKET REACTION TO COVID-19 MONETARY AND FISCAL STIMULUS IN MAJOR ASEAN COUNTRIES

Authors

Syed Aun R. Rizvi, Lahore University of Management Sciences, PakistanFollow
Solikin M. Juhro, Bank Indonesia, IndonesiaFollow
Paresh K. Narayan, Monash University, AustraliaFollow

Document Type

Article

Abstract

In this paper, we examine the effect of fiscal and monetary policy stimulus actions during the COVID-19 pandemic on the stock markets of four ASEAN countries, namely, Indonesia, Singapore, Malaysia, and Thailand. Using time-series regression models, we show the relative importance of monetary and fiscal policies. Our findings suggest that 7-days after the policy announcement, fiscal policies helped cushion financial market losses in Indonesia, Singapore and Thailand. We do not find any robust evidence of policy effectiveness for Malaysia. While our investigation is preliminary it opens an additional avenue for understanding the effectiveness of policy stimulus.

Recommended Citation

Rizvi, Syed Aun R.; Juhro, Solikin M.; and Narayan, Paresh K. (2021) "UNDERSTANDING MARKET REACTION TO COVID-19 MONETARY AND FISCAL STIMULUS IN MAJOR ASEAN COUNTRIES," Bulletin of Monetary Economics and Banking: Vol. 24: No. 3, Article 4.
DOI: https://doi.org/10.21098/bemp.v24i3.1690
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss3/4

First Page

313

Last Page

334

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Pakistan

Affiliation

Lahore University of Management Sciences