Analyzing The Effect of Monetary Policies and Financial Stability Measures Across Global Markets amid Covid-19 Pandemics

This study investigates causal relationships among financial stability measures and monetary policies implemented in US, EU and Turkey. Selected variables from stock markets, money markets, and bond markets are tested. The set of macrofinancial process covers S&P500 stock market, BIST-100 stock market; Volatility index; German, US and Turkey 10-year treasury bond interest data, European Union 27 average CPI, US CPI, Turkey CPI, ECB policy rate, FED policy rate, CBRT policy rate data. The Granger causality analysis is applied for first; each dataset of US, EU and the Turkish economy, separately. Second, mutual impact of stock markets, money markets and bond markets are examined. Finally CBOE Volatility index (VIX) is taken into account. It is aimed to observe spillover effects from developed economies to emerging markets amid pandemics. The dataset covers the monthly period of 2019M1 to 2023M6.