Equity Prices

This post revisits the 2013 Taper Tantrum episode by measuring the impact of changes in Fed’s expected policy rate path and in the economic outlook on the U.S. dollar and emerging market equity prices and it finds that changes in the global outlook had a meaningful role in explaining global asset price movements during that period. Published on Liberty Street Economics, December 08 2014.

In this post, we look back at global asset market developments over the Tapr Tantrum past summer, and measure how changes in global risk aversion affected the values of carry-trade currencies and emerging market equities between May and September of last year and how the initial signal of a possible change in U.S. monetary policy raised global risk aversion. Published on Liberty Street Economics, March 05 2014.