Bocconi University Researchers Add New Findings in the Area of Finance (Monetary Policy Tightening and Financial Market Reactions: A Comparative Analysis of Soft and Hard Landings): Business – Finance

2025 OCT 09 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Research findings on finance are discussed in a new report. According to news reporting originating from Milano, Italy, by NewsRx correspondents, research stated, “This paper investigates the macro-financial consequences of recent monetary policy tightening cycles, focusing on the distinction between soft and hard landings.”

Our news editors obtained a quote from the research from Bocconi University: “Using an OLS regression framework applied to U.S. and Euro Area data from 1994 to 2023, we analyze the response of equity and bond markets, inflation, and GDP growth to central bank interest rate hikes. The findings suggest that, in most past tightening episodes, central banks succeeded in engineering soft landings without severe disruptions to market conditions or economic growth. However, the current post-pandemic context may lead to a two-stage adjustment, as inflation persistence and geopolitical shocks alter standard transmission dynamics.”

According to the news editors, the research concluded: “The study contributes to the ongoing policy debate on the timing and intensity of rate hikes, offering historical insights and empirical evidence from capital market signals.”

For more information on this research see: Monetary Policy Tightening and Financial Market Reactions: A Comparative Analysis of Soft and Hard Landings. International Journal of Financial Studies, 2025,13(3):150. (International Journal of Financial Studies - http://www.mdpi.com/journal/ijfs). The publisher for International Journal of Financial Studies is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/ijfs13030150.

Our news journalists report that additional information may be obtained by contacting Gimede Gigante, Department of Finance, Bocconi University, 20136 Milano, Italy. Additional authors for this research include Fernando Piccolantonio, Francesca Scarlini.

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