Global Financial Crisis, Liquidity Pressure In Stock Markets And Efficiency Of Central Bank Interventions
In this paper, the authors investigate the hypothesis of efficiency of central bank intervention policies within the current global financial crisis. They firstly discuss the major existing interventions of central banks around the world to improve liquidity, restore investor confidence and avoid a global credit crunch. They then evaluate the short-term efficiency of these policies in the context of the UK, the US and the French financial markets using different modelling techniques. On the one hand, the impulse response functions in a Structural Vector AutoRegressive (SVAR) model are used to apprehend stock market reactions to central bank policies.