Macroeconomic and Public Health Policies amid COVID-19 Pandemic: Global Financial Sectors' Responses
Keywords:COVID-19, Monetary, Fiscal, Public Health, Financial
Given the unprecedentedness and scale of the COVID-19 pandemic, the impact and effectiveness of fiscal, monetary, and public health policies in response to the pandemic are largely unknown. This paper aims at presenting empirical evidence on the response of the financial sector to fiscal, monetary, and public health policies implemented during the pandemic. Using random effect estimation with data from 40 economies, we find that the financial sector does not respond significantly to fiscal stimulus, the monetary policy relaxation during the pandemic also has less magnitude of impact, stricter physical containment measures are also found to be positively and significantly affect financial sector performance.
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