Monetary Policy and the Price Behavior in Emerging Stock Markets /

This paper examines whether the six largest and most active emerging stock markets are informationally efficient with respect to changes in the money supply. To investigate if stock prices fully reflect the information contained in money supply changes, two different econometric techniques are emplo...

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Библиографические подробности
Главный автор: Cornelius, Peter
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 1991.
Серии:IMF Working Papers; Working Paper ; No. 1991/027
Online-ссылка:Full text available on IMF
Описание
Итог:This paper examines whether the six largest and most active emerging stock markets are informationally efficient with respect to changes in the money supply. To investigate if stock prices fully reflect the information contained in money supply changes, two different econometric techniques are employed. First, direct Granger-causality tests are used, which locus on the short-run relationship between stock prices and money. Second, the long-run behavior of the two variables is studied by means of co-integration tests. The results suggest that at least for two markets profitable trading rules can be developed to earn consistently higher-than-normal rates of return.
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Объем:1 online resource (32 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students