Asymmetric effect of monetary policy on stock market performance in the ECOWAS zone: empirical evidence from the NARDL approach

The aim of this study is to analyze the effect of monetary policy on stock market performance in the ECOWAS zone, from 2000 to 2021, using data from three stock exchanges (BRVM, Ghana Stock Exchange and Nigerian Stock Exchange). Applying the NARDL (Nonlinear Autoregressive Distributed Lag) model, the results indicate that monetary policy has an asymmetric effect in the short and long term on stock market performance in the ECOWAS zone. The study revealed that the Nigerian stock market is more reactive to changes in monetary policy than the Ghanaian stock market and the BRVM.