Economics, Econometrics and Finance
5 years ago

Stock market volatility hinders corporate investment, dampening future income growth.

IMF Working Paper
Stock Market Volatility and Corporate Investment
Zuliu Hu

Paper Summary

Stock market volatility can impact real fixed investment. US data shows that high volatility is linked to lower investment growth, which can hinder future income growth. Reducing stock market volatility could be beneficial for the economy.

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