Does the U.S. economic policy uncertainty connect financial markets? Evidence from oil and commodity currencies

التفاصيل البيبلوغرافية
العنوان: Does the U.S. economic policy uncertainty connect financial markets? Evidence from oil and commodity currencies
المؤلفون: Ibrahim D. Raheem, Claudiu Tiberiu Albulescu, Riza Demirer, Aviral Kumar Tiwari
المصدر: Energy Economics. 83:375-388
بيانات النشر: Elsevier BV, 2019.
سنة النشر: 2019
مصطلحات موضوعية: Economics and Econometrics, Economic policy, 020209 energy, 05 social sciences, Monetary policy, Financial market, 02 engineering and technology, General Energy, Spillover effect, Carry (investment), Currency, 0502 economics and business, Financial crisis, 0202 electrical engineering, electronic engineering, information engineering, Economics, Liberian dollar, 050207 economics, Foreign exchange market
الوصف: We provide novel insight to the emerging literature on the role of U.S. monetary policy as a driver of a global financial cycle by examining the possible causal effect of U.S. economic policy uncertainty on the connectedness of crude oil and currency markets, using a sample of commodity currencies from advanced and emerging nations. A battery of linear and nonlinear Granger-based causality tests indicate the presence of a causal relationship between economic policy uncertainty and the connectedness of oil and currency markets, particularly at low frequencies and more significantly after the outburst of the global financial crisis. While crude oil generally serves as a net transmitter of shocks to currencies across all frequency bands, the spillover effects from oil are largely concentrated towards the G10 currencies of Australian and New Zealand dollar that are often used as investment currencies in global carry trade strategies. Overall, our findings suggest the presence of a significant pass-through effect of economic policy uncertainty via oil prices, spilling over to the currency market, in line with the emerging evidence that the monetary policy by the U.S. Fed serves as a major driver of a global financial cycle that describes patterns in global capital flows, credit activity and asset prices across financial markets.
تدمد: 0140-9883
DOI: 10.1016/j.eneco.2019.07.024
URL الوصول: https://explore.openaire.eu/search/publication?articleId=doi_________::39c71c29afc733831ccd1102d9b6dacf
https://doi.org/10.1016/j.eneco.2019.07.024
Rights: CLOSED
رقم الانضمام: edsair.doi...........39c71c29afc733831ccd1102d9b6dacf
قاعدة البيانات: OpenAIRE
الوصف
تدمد:01409883
DOI:10.1016/j.eneco.2019.07.024