Stock prices, inflation and output: Evidence from wavelet analysis

dc.contributor.author Durai, S. Raja Sethu
dc.contributor.author Bhaduri, Saumitra N.
dc.date.accessioned 2022-03-27T02:09:51Z
dc.date.available 2022-03-27T02:09:51Z
dc.date.issued 2009-09-01
dc.description.abstract The negative relationship between real stock return and inflation puzzled many as it contradicts conventional Fisherian wisdom. Fama [Fama, E.F. (1981), "Stock returns, real activity, inflation and money", American Economic Review, 71(September), 545-564.] gave an explanation for this negative relationship with two propositions that links real stock return and inflation through real output. This study revisits Fama's hypothesis for India in the post-liberalized period from a developing country perspective. Examining this relationship on the time-scale decomposition from a wavelet multi-resolution analysis suggests that Fama's hypothesis holds only for the long time scale and remains as a puzzle for the other time scales. © 2009 Elsevier B.V. All rights reserved.
dc.identifier.citation Economic Modelling. v.26(5)
dc.identifier.issn 02649993
dc.identifier.uri 10.1016/j.econmod.2009.04.005
dc.identifier.uri https://www.sciencedirect.com/science/article/abs/pii/S0264999309000716
dc.identifier.uri https://dspace.uohyd.ac.in/handle/1/4755
dc.subject Fisher hypothesis
dc.subject Inflation
dc.subject Real activity
dc.subject Stock return
dc.subject Wavelets
dc.title Stock prices, inflation and output: Evidence from wavelet analysis
dc.type Journal. Article
dspace.entity.type
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