Publikationen des Projekts: Fundamentale makroökonomische Bestimmungsfaktoren von Wertpapierpreisen: Zustandsabhängigkeiten und Implikationen für die Geldpolitik

Monetary Policy and Mispricing in Stock Markets

We investigate the role of monetary policy in stock price misalignments and explore whether central banks can attenuate excessive mispricing as suggested by the proponents of a “leaning against the wind” monetary policy. Decomposing stock prices into expected excess dividends, an equity risk premium, and a mispricing component, we find that prices fall more strongly in response to an increase in the ...