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Greek Political Economy in the Post-crisis Period 2010–2019 Read chapter Read first chapter

2022 | OriginalPaper | Chapter

The Impact of Quantitative Easing on Stock Market: Evidence from Greece

Authors : Sofia Karagiannopoulou, Paris Patsis, Nikolaos Sariannidis

Published in: Business Development and Economic Governance in Southeastern Europe

Publisher: Springer International Publishing

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Abstract

In September of 2014, ECB decides the beginning of the first Quantitative Easing (QE) programme called Asset-Backed Securities Purchase (ABSPP) and Covered Bond Purchase Programme (CBPP), in order to face the financial crisis. Next programme was the Public Sector Purchase Programme (PSPP) on 9 March 2015. Finally, on 18 March 2020, the ECB started the third programme called Pandemic Emergency Purchase Programme (PEPP). The goal of this study is to explore the impact of QE programmes on the stock market of Athens, considering the fact that Greece was the only European country to participate only in the third programme. Using daily data from 1/9/2014 to 22/1/2021, 3 GARCH(1,1) models with dummy variables are constructed to incorporate different QE programmes. In addition, 10-year bond, gold, and DAX are used in order to isolate systematic international factors. The empirical results show that the first QE programme has decreased the stock prices, the findings of the second QE programme aren’t statistically important, while the third programme has a positive effect on the stock market. The paper concludes that Greek participation on the QE programme played an important role in the stock market and suggests that other researchers investigate the methods in which Greece can utilize the positive climate after the end of PEPP.

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previous chapter The Recognition and Impact of Dynamic Pricing with ESL Technology on the Purchase Decision of Consumers in Stationary Grocery Stores: Current Findings and Experiment
next chapter Pest Analysis of the E-commerce Industry: The Case of Greece
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Metadata
Title
The Impact of Quantitative Easing on Stock Market: Evidence from Greece
Authors
Sofia Karagiannopoulou
Paris Patsis
Nikolaos Sariannidis
Copyright Year
2022
Book
Business Development and Economic Governance in Southeastern Europe

Print ISBN: 978-3-031-05350-4

Electronic ISBN: 978-3-031-05351-1

Copyright Year: 2022

DOI
https://doi.org/10.1007/978-3-031-05351-1_16

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