Monetary policy, exchange rates and stock prices in the Middle East region

A structural vector autoregressive model is employed to investigate the impact of monetary policy and real exchange rate shocks on the stock market performance of Kuwait, Oman, Saudi Arabia, Egypt and Jordan. In order to identify the structural shocks both short run and long run restrictions are applied. Unlike previous literature the contemporaneous interdependence between the financial variables are left unrestricted to give a more accurate depiction of the relationships. The heterogeneity of the results reflect the different monetary policy frameworks and stock market characteristics of these countries. Mainly, monetary policy and the real exchange rate shocks have a significant short run impact on the stock prices of the countries that apply a relatively more independent monetary policy and flexible exchange rates.

Does Daily Sunshine make you Happy? Subjective Measures of Well-being and the Weather

This paper examines to what extent individual measures of well-being are correlated with daily weather patterns in the United Kingdom. Merging daily weather data with data from the British Household Panel Survey (BHPS) allows us to test whether measures of well-being are correlated with temperature, sunshine, rainfall and wind speed. We are able to make a strong case for causality due to ‘randomness’ of weather in addition to using regression methods that eliminate time-invariant individual level heterogeneity. Results suggest that some weather parameters (such as sunshine) are correlated with some measures of well-being (job satisfaction); however, in general the effect of weather on subjective measures of well-being is very small.