The Impact of Monetary and Fiscal Policies on the Stock Market and Bond Funds: Evidence from Panel VAR Model

This study examines the relationship between bond fund flows and stock market returns in emerging countries and the impact of monetary and fiscal policies on stock market returns and bond fund flowability. The results of the experiment indicate that, for emerging countries, bond fund flows are related to stock market returns in the previous period, with expansionary monetary policy having a negative impact on bond fund flows and expansionary fiscal policy having a positive impact on bond flows. When stock markets deteriorate and economic conditions are in the doldrums, bond funds flourish and bond fund liquidity increases.