Statistics & Publication
Real Rate of Return on Equities of the Stock Exchange Vs Real Returns on Treasury Bills
Wednesday, 31 January 2001 00:00
Economic theories lend themselves to the view that changes in monetary conditions of an economy affect asset markets and therefore economic activity through induced changes in yield.  Since the early 1980’s, asset prices have undergone major fluctuations.  The impact of these fluctuations on economic activity and on the soundness of the financial market has been a concern for central banks and monetary authorities alike.  For instance, the global stock markets crash of October 1987 in the USA was preceded by a vigorous upswing in equity prices which neither the Federal Reserve Bank nor the US government could prevent.  In Ghana the bearish nature of the stock market in 1999 in particular has been blamed on the slowdown of the Ghanaian economy.

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