Economic policies and their effects on financial market.

This special issue consists of selected papers from the 9th International Conference of the Financial Engineering and Banking Society (FEBS) organized by the Prague University of Economics and Business, Prague, Czech Republic and Audencia Business School, Nantes, France. The main finding of this article is that in case of positive shocks to monetary policy and expansionary business conditions, the monetary policy does not impact the stock market. In particular, they analyze whether the response of stock market returns to monetary policy shocks depends on monetary policy surprises (good news or bad news) and business conditions (contraction or expansion). [Extracted from the article]