---
title: Monetary Policy and Stock Volatility
url: https://www.ml-quant.com/papers/repec/ibn-ijbmjn-v-19-y-2024-i-1-p-46/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:ibn:ijbmjn:v:19:y:2024:i:1:p:46
source_url: https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Fccsenet.org%2Fjournal%2Findex.php%2Fijbm%2Farticle%2Fdownload%2F0%2F0%2F49594%2F53578%3Bh%3Drepec%3Aibn%3Aijbmjn%3Av%3A19%3Ay%3A2024%3Ai%3A1%3Ap%3A46
featured: 2024-02-21
citations: unknown
topic: Derivatives & Volatility
---


# Monetary Policy and Stock Volatility

Research from 2009 to 2021 shows that the Federal Reserve's monetary policy actions led to market volatility in the USA, especially for value stocks.

- Source: https://econpapers.repec.org/scripts/redir.pf?u=https%3A%2F%2Fccsenet.org%2Fjournal%2Findex.php%2Fijbm%2Farticle%2Fdownload%2F0%2F0%2F49594%2F53578%3Bh%3Drepec%3Aibn%3Aijbmjn%3Av%3A19%3Ay%3A2024%3Ai%3A1%3Ap%3A46
- Identifier: RePEc:ibn:ijbmjn:v:19:y:2024:i:1:p:46
- Released: 2024-02-21
- First featured: Quant Letter No. 38 (2024-02-21): https://www.ml-quant.com/issues/2024-02-21/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

## Related

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- [ECB QE Impact on Stock Market](https://www.ml-quant.com/papers/repec/eme-sefpps-sef-02-2022-0108/): The European Central Bank's unconventional monetary policies, like quantitative easing, boost stock prices and reduce market volatility.
- [Retail Investor Response](https://www.ml-quant.com/papers/ssrn/5053211/): The study shows that monetary policy shocks in open economies lead to a shift in assets, with wealthier clients showing a stronger shift from fixed income securities to riskier options.
- [Monetary Policy and Hedging Costs](https://www.ml-quant.com/papers/ssrn/5068016/): The cost of hedging can be greatly affected by monetary policy decisions, as seen during the height of the pandemic crisis in March 2020.
- [Hedge Funds & Monetary Policy](https://www.ml-quant.com/papers/ssrn/5115891/): Hedge funds that react more to monetary policy changes tend to have higher returns, likely because they use government announcements to forecast market futures.
