Hi, I am looking for someone to write an article on the impact of stock market volatility on monetary policy Paper must be at least 5750 words. Please, no plagiarized work!

Hi, I am looking for someone to write an article on the impact of stock market volatility on monetary policy Paper must be at least 5750 words. Please, no plagiarized work! This section presents the results of the estimation. In table 1 we present the results of running regression specifications (1) and (2) using OLS and GMM instrumental variable estimation. We have used the S and P 500, Dow Jones as well as the FTSE 100 indices as measures of stock market prices. All three have been included to verify whether the results obtained are robust to changes in stock market indices. For the GMM estimation, lagged values of inflation and the output gap have been used as instruments. Finally, we have incorporated a recession dummy in the 2nd specification. This dummy variable takes the value 1 for all quarters between 2007 Q3 and 2009 Q4.

In table 1, the 1st column presents the results of running a simple OLS regression on equation (1). The intercept and the coefficient on inflation are positive and significant. However, the coefficient on the output gap, although quite large is not statistically significant. Thus, from the 1st column where the estimation was carried out of equation (1) we find that the interest rate responds only to the inflation. It does not respond to the output gap.

Also, from the last row which presents the Wald test statistic which tests the hypothesis β = γ = 0.5, we find the statistic is highly significant. So, the null hypothesis is rejected by the 1st model.&nbsp. In column 2, the results of estimating the OLS specification (2) are presented. The wald test statistic is 89.25 which is highly significant.