TITLE:
Monetary Policy and Stock Market—UK and China
AUTHORS:
Sitong Chen, Xinyue Chu, Qingbo Qu
KEYWORDS:
Monetary Policy, Stock Market, Influences
JOURNAL NAME:
Open Journal of Business and Management,
Vol.10 No.2,
March
31,
2022
ABSTRACT: In this report, it is said whether
monetary policy will affect the stock market and how we can do to face these
influences. First, this report will invest the relationship between monetary
policy and stock market in UK and China. Second, we use Taylor rule to confirm
the hypothesis. After the research, it shows that the monetary policy in these
countries just affects the stock market not so significantly. Monetary policy
has not responded strongly to bubbles or volatility in share prices.