Can Stock Market Development put chains on Inflation?
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Stock market can be an important part of an economy and its acts as a catalyst. The function of the catalyst is simple, not influence or change but to regulate and accelerate other economic activities. High inflation may be good for the country if the economic growth is increasing income/sale and at the same time production is also increasing. If inflation continues to grow higher, the economy becomes unstable and is unable to meet the demands of the buyers. Therefore, if productive sector is performing less, the movement of cash from buyer to seller slows down and consumer due to lack of cash...
Stock market can be an important part of an economy and its acts as a catalyst. The function of the catalyst is simple, not influence or change but to regulate and accelerate other economic activities. High inflation may be good for the country if the economic growth is increasing income/sale and at the same time production is also increasing. If inflation continues to grow higher, the economy becomes unstable and is unable to meet the demands of the buyers. Therefore, if productive sector is performing less, the movement of cash from buyer to seller slows down and consumer due to lack of cash cannot buy more product from local seller. The study focus is to check whether stock market development in SAARC countries can help put chains on inflation or not.
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