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Macroeconomic Variables

1487 Words6 Pages

Research tittle
Investigating impact of macroeconomics variable on stock market performance, a case study from Pakistan.

Introduction
A well operating stock market improves the savings and promotes the Investment projects. The major function of stock market is to facilitate both savers and borrowers. It promotes savings from a large pool of small savers and help them to invest the funds in a healthy investment. The stock market coordinate with both seller and buyer.
A branch of economics which examines the relationship among macroeconomic variables, such as national product, total employment, the monetary collection, the general price and the like (mankiw).
Macroeconomics contrasted with microeconomics which focuses on decisions made by …show more content…

Fiscal policy affects the national economy through its effect on total demand, government capital design and incentives. Since public spending is part of the total demand, increasing government spending on goods and services boost the total demand. Fiscal policy may be used as an interfering policy to influence interest rates.
Monetary policy is tool used by the state bank of country to control the supply of money, inflation rate and interest rates to ensure the stability of price in the country. Central banks use a number of tools to form monetary policy. Open marketplace procedures directly affect the money supply through buying short-term government bonds to expand money supply or selling them to diminish it. Using and business control assumption through the purchase through its normal process of strict money management, the most probable enough about property values can bring about the most remarkable object, possibly leading to financial crisis that could be more …show more content…

The stock market will be used as a dependent variable in this research. In fiscal policy we shall measured the impact of government revenue and Government expenditure on the stock market. In this article we shall also measure the impact of monetary policy and inflation on the stock market during the financial crises. For measuring the impact of these macroeconomic variables on the stock market data will be obtained from the different sources. The data about interest rate will be obtained from government monetary policy that has announced on a term basis. The data about fiscal policy means Government revenue and government expenditure will be obtained from fiscal report that is issued by the ministry of finance on every year. Monthly data about inflation and lastly the monthly data about the stock market index will be obtained from website. The Business Recorder (Pakistani financial newspaper), Publications of the Federal Bureau of Statistics, and International

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