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Impact of Monetary Policy on Stock Price: Evidence from Bangladesh

Afrin Rifat
Received: 22 July 2015    Accepted: 7 August 2015    Published: 19 August 2015
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Abstract

This study intends to explore the impact of monetary policy on the performance of stock market from the perspective of a developing country-namely Bangladesh. The issue of monetary policy has been a subject of debate among several financial economists since a long time. Monetary policy is basically that part of the macroeconomics, which aims to achieve a set of objectives that are, conveyed in terms of several macroeconomic variables such as inflation, real output, money supply, exchange rate etc. As a result, any change in the monetary policy will have an effect on these variables. Understanding the sensitivity of stock market with respect to these variables of monetary policy frameworks is very important, particularly to recognize the monetary policy mechanism transmission into the stock market. This paper investigates whether current economic activities or more specifically the monetary policy tools of Bangladesh can explain stock market returns by using a number of econometric models of measuring long-run and short-run relationship between monetary policy tools and stock price

DOI 10.11648/j.jim.20150405.29
Published in Journal of Investment and Management (Volume 4, Issue 5, October 2015)
Page(s) 273-284
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

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Keywords

Bangladesh, Monetary Policy, Dhaka Stock Exchange (DSE), Stock Return

References
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    Afrin Rifat. (2015). Impact of Monetary Policy on Stock Price: Evidence from Bangladesh. Journal of Investment and Management, 4(5), 273-284. https://doi.org/10.11648/j.jim.20150405.29

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    Afrin Rifat. Impact of Monetary Policy on Stock Price: Evidence from Bangladesh. J. Invest. Manag. 2015, 4(5), 273-284. doi: 10.11648/j.jim.20150405.29

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    Afrin Rifat. Impact of Monetary Policy on Stock Price: Evidence from Bangladesh. J Invest Manag. 2015;4(5):273-284. doi: 10.11648/j.jim.20150405.29

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  • @article{10.11648/j.jim.20150405.29,
  author = {Afrin Rifat},
  title = {Impact of Monetary Policy on Stock Price: Evidence from Bangladesh},
  journal = {Journal of Investment and Management},
  volume = {4},
  number = {5},
  pages = {273-284},
  doi = {10.11648/j.jim.20150405.29},
  url = {https://doi.org/10.11648/j.jim.20150405.29},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20150405.29},
  abstract = {This study intends to explore the impact of monetary policy on the performance of stock market from the perspective of a developing country-namely Bangladesh. The issue of monetary policy has been a subject of debate among several financial economists since a long time. Monetary policy is basically that part of the macroeconomics, which aims to achieve a set of objectives that are, conveyed in terms of several macroeconomic variables such as inflation, real output, money supply, exchange rate etc. As a result, any change in the monetary policy will have an effect on these variables. Understanding the sensitivity of stock market with respect to these variables of monetary policy frameworks is very important, particularly to recognize the monetary policy mechanism transmission into the stock market. This paper investigates whether current economic activities or more specifically the monetary policy tools of Bangladesh can explain stock market returns by using a number of econometric models of measuring long-run and short-run relationship between monetary policy tools and stock price},
 year = {2015}
}

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  • TY  - JOUR
T1  - Impact of Monetary Policy on Stock Price: Evidence from Bangladesh
AU  - Afrin Rifat
Y1  - 2015/08/19
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N1  - https://doi.org/10.11648/j.jim.20150405.29
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JF  - Journal of Investment and Management
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PB  - Science Publishing Group
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AB  - This study intends to explore the impact of monetary policy on the performance of stock market from the perspective of a developing country-namely Bangladesh. The issue of monetary policy has been a subject of debate among several financial economists since a long time. Monetary policy is basically that part of the macroeconomics, which aims to achieve a set of objectives that are, conveyed in terms of several macroeconomic variables such as inflation, real output, money supply, exchange rate etc. As a result, any change in the monetary policy will have an effect on these variables. Understanding the sensitivity of stock market with respect to these variables of monetary policy frameworks is very important, particularly to recognize the monetary policy mechanism transmission into the stock market. This paper investigates whether current economic activities or more specifically the monetary policy tools of Bangladesh can explain stock market returns by using a number of econometric models of measuring long-run and short-run relationship between monetary policy tools and stock price
VL  - 4
IS  - 5
ER  -

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Author Information

  • Afrin Rifat

    Department of Accounting and Finance, School of Business and Economics, North South University, Dhaka, Bangladesh

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