Monetary Policy Spillovers to Polish Financial Markets
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European Central Bank, Germany
Magdalena Grothe   

European Central Bank, Germany
Submission date: 2022-07-26
Final revision date: 2023-01-25
Acceptance date: 2023-04-04
Publication date: 2023-06-30
GNPJE 2023;314(2):1–10
This paper analyses the impact of monetary policy shocks from large advanced economies on Polish financial markets. I explore the spillovers from the US Federal Reserve’s and European Central Bank’s monetary policy decisions, differentiating between the effects of monetary policy and information shocks. The results suggest that the spillovers from US monetary policy are stronger and move Polish government and corporate bond yields, equity prices and the exchange rate significantly in the weeks following the announcement. At the same time, information shocks following monetary policy events in the euro area seem to have a significant effect on Polish financial markets. The findings may have interesting implications from the perspective of financial market functioning and policy-related financial market monitoring of a small open economy.
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