Economies 2013, 1(3), 19-25; doi:10.3390/economies1030019
Short Note

Effects of Fiscal Policy and Monetary Policy on the Stock Market in Poland

Received: 16 July 2013; in revised form: 23 September 2013 / Accepted: 3 October 2013 / Published: 11 October 2013
(This article belongs to the Special Issue Effects of Fiscal and Monetary Policy in the Great Recession)
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract: The focus of this paper is to examine potential impacts of fiscal and monetary policies on stock market performance in Poland. Applying the GARCH model and based on a sample during 1999.Q2 to 2012.Q4, this paper finds that Poland’s stock market index is not affected by the ratio of government deficits or debt to GDP and is negatively influenced by the money market rate. The stock index and the ratio of M3 to GDP show a quadratic relationship with a critical value of 46.03%, suggesting that they have a positive relationship if the M3/GDP ratio is less than 46.03% and a negative relationship if the M3/GDP ratio is greater than 46.03%. Furthermore, Poland’s stock index is positively associated with industrial production and stock market performance in Germany and the U.S. and negatively affected by the nominal effective exchange rate and the inflation rate.
Keywords: stock market index; fiscal policy; monetary policy; macroeconomic variables; GARCH
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MDPI and ACS Style

Hsing, Y. Effects of Fiscal Policy and Monetary Policy on the Stock Market in Poland. Economies 2013, 1, 19-25.

AMA Style

Hsing Y. Effects of Fiscal Policy and Monetary Policy on the Stock Market in Poland. Economies. 2013; 1(3):19-25.

Chicago/Turabian Style

Hsing, Yu. 2013. "Effects of Fiscal Policy and Monetary Policy on the Stock Market in Poland." Economies 1, no. 3: 19-25.

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