Year of Graduation
Influence of macroeconomic policy on the stock market in developing countries
The study investigates the effect of 5 macroeconomic factors associated with macroeconomic policy instruments on the stock markets in the BRICS in the period from 1999 till 2013. Used econometric methods as the Johansen’s co-integration test, vector error correction model, impulse response function, variance decomposition, Granger causality test. It was found that the effect of inflation is the most unpredictable, while the influence of short-term interest rates are always negative. The money supply is the most important monetary variable, and the effect of the exchange rate is the most significant. It also proved the importance of using the model of relations of public procurement to GDP.