The Relationship Between the Stock Market and Economic Growth
The Weekly Globe: in this article, we present some channels of interaction between the stock market and the real economy and discuss how a healthy stock market can contribute to better business decisions and to economic growth in general
By Rodrigo Lopes & Eduardo Coccaro
The stock market's performance does not necessarily reflect a country's economy, and generally, market indexes do not represent the composition of the economy. However, that does not mean that the stock market does not affect how the economy works.
In this article, we will present some channels of interaction between the stock market and the real economy. We will also take a deeper look at the case of emerging markets and discuss how a healthy stock market can contribute to better business decisions and to economic growth in general.
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