Exchange Rate Movements and International Interdependence of Stock Markets.

This paper investigates linkages between stock markets in seven industrialized countries since 1974. Empirical evidence shows that both nominal and real stock prices (and returns) are strongly positively correlated across countries, and that nominal exchange rate changes do not have systematic effec...

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Bibliografski detalji
Autor kompanije: International Monetary Fund
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1989.
Serija:IMF Working Papers; Working Paper ; No. 1989/044
Online pristup:Full text available on IMF
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245 1 0 |a Exchange Rate Movements and International Interdependence of Stock Markets. 
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300 |a 1 online resource (52 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper investigates linkages between stock markets in seven industrialized countries since 1974. Empirical evidence shows that both nominal and real stock prices (and returns) are strongly positively correlated across countries, and that nominal exchange rate changes do not have systematic effects on nominal stock prices. A two-country theoretical model is developed and an attempt is made to reconcile the empirical findings with the properties of this model. Independent evidence on the main sources of shocks is used to argue that the time-varying correlation in the data can be reconciled with the predictions of the theory. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1989/044 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1989/044/001.1989.issue-044-en.xml  |z IMF e-Library