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. 2020 Oct:36:101528.
doi: 10.1016/j.frl.2020.101528. Epub 2020 Apr 16.

Financial markets under the global pandemic of COVID-19

Dayong Zhang  1 , Min Hu  1 , Qiang Ji  2   3
Affiliations

Financial markets under the global pandemic of COVID-19

Dayong Zhang et al. Financ Res Lett. 2020 Oct.

Abstract

The rapid spread of coronavirus (COVID-19) has dramatic impacts on financial markets all over the world. It has created an unprecedented level of risk, causing investors to suffer significant loses in a very short period of time. This paper aims to map the general patterns of country-specific risks and systemic risks in the global financial markets. It also analyses the potential consequence of policy interventions, such as the US' decision to implement a zero-percent interest rate and unlimited quantitative easing (QE), and to what extent these policies may introduce further uncertainties into global financial markets.

Keywords: Coronavirus; Financial markets; Pandemic; Quantitative easing; Systemic risk.

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Figures

Fig 1
Fig. 1
Confirmed cases in major affected countries. (https://coronavirus.jhu.edu/)
Fig 2
Fig. 2
Weekly return correlations.
Fig 3
Fig. 3
Heat map of pairwise correlations before and after the WHO announcement.
Fig 4
Fig. 4
MST plots before and after the pandemic announcement.
See this image and copyright information in PMC

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