Issue |
E3S Web Conf.
Volume 522, 2024
2023 9th International Symposium on Vehicle Emission Supervision and Environment Protection (VESEP2023)
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Article Number | 01059 | |
Number of page(s) | 13 | |
DOI | https://doi.org/10.1051/e3sconf/202452201059 | |
Published online | 07 May 2024 |
How does the central bank stabilize the stock market under macro uncertainty: Evidence from China stock market
1 School of Economics, Anhui University, 230601, Hefei, China
2 School of Finance, Guangdong University of Foreign Studies, 510006, Guangzhou, China
3 School of Statistics and Mathematics, Zhejiang Gongshang University, 310018, Hangzhou, China
* Corresponding author: happyhefei2000@163.com
This paper establishes mathematical models and PVAR models to verify the micro transmission path and the validity of central bank communication and actual interest rate intervention on China stock market. Through heterogeneity analysis, we further test whether the level of macroeconomic uncertainty affects their effect. We confirmthat both central bank communication and actual interest rate intervention have a significant effect. However, central bank communication is ineffective in the high macroeconomic uncertainty sample while the interest rate intervention can have a greater effect. Overall, the results suggest that central bank communication is a more effective monetary policy tool on stock market in low macroeconomic uncertainty period, while interest rate intervention is a better choice in high macroeconomic uncertainty period.
Key words: Macroeconomic uncertainty / Central bank communication / China stock market / Interest rate intervention / Micro mechanism
© The Authors, published by EDP Sciences, 2024
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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