COVID-19 vaccination and response of Latin American financial markets

Abstract

The COVID-19 pandemic has had major economic consequences in the markets. This paper analyzes the relationship between the progress of vaccination programs and Latin American financial markets. A Wavelet coherence analysis approach is used to evaluate the co-movement of markets and the progress of inoculation strategies based on daily data from Argentina, Brazil, Chile and Mexico. The results show that the progress of vaccination programs in Latin American countries has positive and significant effects on the returns of their financial markets.