Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 77 , 18 April 2024
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The Impact of Interest Rate Hikes on the Capital Markets
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Abstract
As the COVID-19 pandemic continues to spread globally, the economic situation of countries has captured significant attention. The resulting inflation has prompted countries to implement monetary policies to stabilize economic activity. As the leading economic power in the world, the United States has a significant influence on the global economy. This study aims to analyze the interest rate hike policy implemented by the United States, its plan and purpose, and its social impacts. Comparative analysis is used to examine the interest rate policies of China and the European Union, two significant trade partners with which the United States has a positive commercial relationship. Also, this paper further analyzes the domestic effects of the trading partners of the interest rate policy. It is found that both the US and the EU have also implemented the policy of interest rate hikes, whereas China has implemented the policy of interest rate cut. The different policy decisions are related to the extent of economic recovery after the pandemic, the political context, and the cultural background of each country.
Keywords
Interest Rate, Monetary Policies, Financial Stability
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-377-7
- ISBN (Online)
- 978-1-83558-378-4
- Published Date
- 18 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/77/20241594
- Copyright
- 18 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited