Financial Markets Interactions Between Economic Theory And Practice

During the last decades many financial analysts, either theorists or practitioners, have dedicated their studies to the interactions between different financial sectors. The results of these researches confirm that commodities, bonds and stock markets are closely related; therefore a thorough analysis of one should include considerations of the other two. The aim of this paper is to demonstrate that, even if from the theoretical point of view financial markets present typical and strong correlations between them, under economic turmoil the correlations change their signs. Both elementary rules of economic theory and examples with real time series are used in the demonstration.

Provided by: Munich Personal Repec Archive Topic: CXO Date Added: Dec 2010 Format: PDF

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