Abstract—The research of stock market plays an important
role in capital market and risk control. For the significant
impact on the stock market, this paper studies the effect of
monetary policy on the stock market as well as the effect of
investor sentiment on the conducting effect of monetary policy
by establishing VAR model. This paper also analyses the
influence of monetary policy and investor sentiment on stock
price in stages by combining specific events in the sample
interval and using the structural mutation model. The study
reveals that investor sentiment will greatly impact on the
transmission of monetary policy, And with a relatively small
influence, the impact of monetary policy on the stock market is
not always present.
Index Terms—Conducting effect, investor sentiment,
monetary policy, stock market.
The authors are with Harbin Institute of Technology, Harbin, China (e-mail:
jinxinhit@hit.edu.cn, lmt131313@163.com, 1170910444@qq.com).
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Cite: Xin Jin, Mengting Li, and Tianxi Jin, "Research on the Conducting Effect of Monetary Policy on Stock Market Based on Investor Sentiment," International Journal of Trade, Economics and Finance vol.12, no.3, pp. 62-68, 2021.
Copyright © 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).