• Syed Aun R. Rizvi Lahore University of Management Sciences http://orcid.org/0000-0002-6976-299X
  • Solikin M. Juhro Bank Indonesia
  • Paresh K. Narayan Monash University
Keywords: Stimulus, Fiscal policy, Monetary policy, Stock returns


In this paper, we examine the effect of fiscal and monetary policy stimulus actions during the COVID-19 pandemic on the stock markets of four ASEAN countries, namely, Indonesia, Singapore, Malaysia, and Thailand. Using time-series regression models, we show the relative importance of monetary and fiscal policies. Our findings suggest that 7-days after the policy announcement, fiscal policies helped cushion financial market losses in Indonesia, Singapore and Thailand. We do not find any robust evidence of policy effectiveness for Malaysia. While our investigation is preliminary it opens an additional avenue for understanding the effectiveness of policy stimulus.


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How to Cite
Rizvi, S. A. R., Juhro, S., & Narayan, P. (2021). UNDERSTANDING MARKET REACTION TO COVID-19 MONETARY AND FISCAL STIMULUS IN MAJOR ASEAN COUNTRIES. Buletin Ekonomi Moneter Dan Perbankan, 24(3), 313 - 334. https://doi.org/10.21098/bemp.v24i3.1690