How do stock price volatility affect monetary policy?

Title

Tentative structure of the essay

a)    Introduction: you should explain what the plan of your essay. Information refers to the topic you selected, the country/market that you are going to investigate, the time period that your essay is going to cover. Explain why it is interesting to research on this topic and which results you expect (about 500 words).

b)    Empirical framework section: present the model that you want to estimate, i.e. the main equation that you are going to use in your analysis. State carefully the main hypotheses that you are going to test. You can also include a discussion about the estimator that you are going to use in your model (about 700 words).

c)    Data description: in this section, you need to explain carefully the data that you use. State clearly the source, the country/market that you are going to investigate. In this section, you may want to include a summary statistics and a correlation matrix for your data (this is what we did last term in Eviews class 1). If you like, you can add some graphs explaining the key points related to the main variables that you use in your model. Notice that the raw data that you use should not listed at the end of your essay (about 600 words).

d)    Presentation and discussion your results: in this section, you present your estimation output (you may want to copy and paste tables from Eviews screenshots or you want to create your own tables to summarize your results. Both of them are fine). Highlight your main results in connection with the hypotheses you want to test. Present in this section all the estimations and tests that you carry out. Include your comments to the variables, for instance which is the magnitude of the estimated coefficients, whether they are statistically significant, whether the model is overall significant, which is the R2 and which is its meaning and so on (about 1000 word).

e)    Conclusions: summarize your main results briefly (200 words).

The above number of words is not mandatory. 3000 words is just the maximum. In other words, it may be shorter than that. Moreover, depending on your analysis you may change them (e.g. if you want to write 100 words more in the presentation and discussion of your results, you can reduce by 100 words the empirical framework section).

Do not present the literature review. During your discussion, you may refer to the work of some authors. In this case, you can include a brief reference list at the end of your essay. It will not be counted in the 3000 words.

Hope the above helps

Dario