Prethodno priopćenje

MACROECONOMIC VARIABLES AND THE STOCK MARKET: THE CASE OF CROATIA

Yu Hsing

Sažetak

This paper examines the relationship between the Croatian stock market index and relevant macroeconomic variables. Applying the GARCH model, this paper finds that the Croatian stock market index is positively associated with real GDP, the M1/GDP ratio, the German stock market index and the euro area government bond yield and is negatively influenced by the ratio of the government deficit to GDP, the domestic real interest rate, the HRK/USD exchange rate, and the expected inflation rate. Hence, to promote a healthy stock market, the authorities are expected to pursue economic growth, fiscal discipline, moderate increase in the money supply, the appreciation of the kuna, and a relatively low interest rate or expected inflation rate.

Ključne riječi

CROBEX; government deficits; money supply; interest rates; exchange rates; world stock markets

Hrčak ID:

77597

URI

https://hrcak.srce.hr/77597

Datum izdavanja:

1.12.2011.

Podaci na drugim jezicima: hrvatski

Posjeta: 2.622 *