Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 9, 2023 erstellt
Description:
We investigate the influence of US quality of political signals (USQPOLS) on advanced and emerging markets using the Global Vector Autoregressive (GVAR) model that also accommodates the macroeconomic conditions of the shock recipient markets. We show an immediate negative impact on the equity markets with about 1.5% response to a 1 standard deviation shock due to the USQPOLS. However, we find impulse responses that transcend the immediate period for the high and low quality of political signals albeit with contrasting evidence. We are able to trace our evidence to the exchange rate channel and document important implications for policy and practice