Impact Of Inflation On Stock Market Pdf. The results indicate that the value of coefficient of constant is 0.0219, coefficient value of inflation rate. These perhaps surprising results (common stocks
187 inflation and the stock market effect of a high constant rate of inflation and the effect of an increase in the rate of inflation expected for the future. &walker,2005).the performance of a stock market of an economy is of interest to various parties including investors, capital markets, the stock exchange and government among others. One of such factors is inflation, which causes nominal stock price to rise at the same rate as the general price level, leaving real stock.
For Example High Inflation Creates Uncertainty And High Level Of Volatility In Stock Market.
Inflation, stock market, current value of the stock market, capital market, and value of shares traded. It may slow down the economic activities in the economy. Context, the intention of this study is to examine the impact of the inflation rate on stock market in india during the period 2009 to 2015.
At The Very Least, We Can Estimate The Potential Impact Of Inflation On Our Standard Of Living.
Pensee journal vol 75, no. These perhaps surprising results (common stocks One of such factors is inflation, which causes nominal stock price to rise at the same rate as the general price level, leaving real stock.
&Walker,2005).The Performance Of A Stock Market Of An Economy Is Of Interest To Various Parties Including Investors, Capital Markets, The Stock Exchange And Government Among Others.
Stock market performance is influenced by a number of factors key among them the activities of governments and the general performance of the economy. Impact of high inflation on share prices. During the crises, the inflation rate rose which resulted in higher required rate of return as well as higher stock market volatility.
Díaz, A., & Jareño, F.
It is generally measured in the consumer price index (cpi) or retail price index (rpi). The stock market plays an important role in the growth of economy so fluctuation in consumer goods prices will affect either positively or negatively the returns of the stock market. Inflation, tax rules, and capital formation.
People Will Change The Previous Consumption Habits, The Marginal Propensity To Consume Coefficient Becomes Larger.
Therefore, investigating the impact of inflation on stock market performance has implications for The impact of inflation on stock market returns and conditional volatility: Inflation has been much maligned due to the deleterious impact of the ‘great inflation’ era of the