Nicolau, Mihaela (2010): Financial Markets Interactions between Economic Theory and Practice. Published in: The Annals of Dunărea de Jos University Fascicle I. Economics and Applied Informatics , Vol. 16, No. 2 (30. November 2010): pp. 27-36.
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During the last decades many financial analysts, either theorists or practitioners, have dedicated their studies to the interactions between different financial sectors. The results of these researches confirm that commodities, bonds and stock markets are closely related, therefore a thorough analysis of one should includes considerations of the other two. The aim of this article is to demonstrate that, even if from the theoretical point of view financial markets present typical and strong correlations between them, under economic turmoil the correlations change their signs. Both elementary rules of economic theory and examples with real time series are used in the demonstration. The results of our research emphasize that a simple theoretical analysis of financial markets’ behaviour through inflation and interest rates cannot define the real interactions of the markets and more robust research approaches are required.
|Item Type:||MPRA Paper|
|Original Title:||Financial Markets Interactions between Economic Theory and Practice|
|Keywords:||financial markets, correlation coefficient, inflation, interest rates, commodities, bonds, stocks, oil price|
|Subjects:||G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E39 - Other
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
G - Financial Economics > G1 - General Financial Markets > G10 - General
|Depositing User:||Mihaela Nicolau|
|Date Deposited:||15. Feb 2012 15:28|
|Last Modified:||14. Feb 2013 09:58|
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Financial Markets Interactions between Economic Theory and Practice. (deposited 11. Dec 2010 00:26)
Financial Markets Interactions between Economic Theory and Practice. (deposited 21. Apr 2011 21:07)
- Financial Markets Interactions between Economic Theory and Practice. (deposited 15. Feb 2012 15:28) [Currently Displayed]
- Financial Markets Interactions between Economic Theory and Practice. (deposited 21. Apr 2011 21:07)