The relationship between the stock market and the real economy

From Vijana FM Sat Jan 5 2013, 19:40:33

I discuss the relation between the stock market and the real economy. In particular, I discuss two empirical findings: First, stock volatility is time varying and dependent on the state of the real economy. Second, macroeconomic volatility is a weak predictor of financial volatility while it is the opposite that holds strongly.

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