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FISHER HYPOTHESIS IN THE STOCK MARKET AN ALTERNATIVE SPECIFICATION

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14 Pages : 134-145

http://dx.doi.org/10.31703/gssr.2020(V-I).14      10.31703/gssr.2020(V-I).14      Published : Mar 1

Fisher Hypothesis in the Stock Market: An Alternative Specification

Abstract

    The stock market plays a pivotal role in the sustainable development of an economy. Fishers hypothesis in the stock market specifies that stock returns are directly linked to the rate of inflation. The objective of this paper is to explore this relationship using panel dataset for 56 countries from 1950-2018 and applying general to a specific technique for above-average Money Supply/GDP countries and below-average Money Supply/GDP countries separately and for different income group countries i.e. high-income countries, upper-middle-income countries, and lower-middle-income countries. Our analysis indicates that the Fisher hypothesis holds in the world economies except for lower-middle-income countries but it holds in its weak form.

    Fisher Hypothesis, Stock Market, Inflation, General to Specific Technique.

    (1) Surayya Mukhtar
    Lecturer Economics,Department of Economics,International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan.
    (2) Abdul Rashid
    Associate Professor, Department of Economics,International Institute of Islamic Economics, International Islamic University, Islamabad, Pakistan
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Cite this article

APA

CHICAGO

    CHICAGO : Mukhtar, Surayya, and Abdul Rashid. 2020. "Fisher Hypothesis in the Stock Market: An Alternative Specification." Global Social Sciences Review, V (I): 134-145 doi: 10.31703/gssr.2020(V-I).14

HARVARD

    HARVARD : MUKHTAR, S. & RASHID, A. 2020. Fisher Hypothesis in the Stock Market: An Alternative Specification. Global Social Sciences Review, V, 134-145.

MHRA

    MHRA : Mukhtar, Surayya, and Abdul Rashid. 2020. "Fisher Hypothesis in the Stock Market: An Alternative Specification." Global Social Sciences Review, V: 134-145

MLA

    MLA : Mukhtar, Surayya, and Abdul Rashid. "Fisher Hypothesis in the Stock Market: An Alternative Specification." Global Social Sciences Review, V.I (2020): 134-145 Print.

OXFORD

    OXFORD : Mukhtar, Surayya and Rashid, Abdul (2020), "Fisher Hypothesis in the Stock Market: An Alternative Specification", Global Social Sciences Review, V (I), 134-145

TURABIAN

    TURABIAN : Mukhtar, Surayya, and Abdul Rashid. "Fisher Hypothesis in the Stock Market: An Alternative Specification." Global Social Sciences Review V, no. I (2020): 134-145. https://doi.org/10.31703/gssr.2020(V-I).14