The effect of fiscal and monetary policies interaction on stock market performance: Evidence from Nigeria

Artikel

This study examines the impact of the interactions between fiscal and monetary policies on stock market behaviour (ASI) and the impact of the volatility of these interactions on the Nigerian stock market. The study analysed monthly data using the ARDL and EGARCH models. The results show the interaction between monetary and fiscal policies influence on stock market returns in Nigeria. The ARDL results show evidence of long run relationship between ASI and Monetary-fiscal policies. The results from the volatility estimates show that the ASI volatility is largely sensitive to volatility in the interactions between the two policy instruments. The results suggest calibrating both the monetary and fiscal policies in a single model when formulating stock market policy as their interaction exerts significantly on stock market behaviour, thus both policies should be considered in tandem.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Future Business Journal ; ISSN: 2314-7210 ; Volume: 4 ; Year: 2018 ; Issue: 1 ; Pages: 16-33 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Management ; Monetary Policy ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
• Subject: ARDL ; EGARCH ; Fiscal-monetary policy ; Nigeria ; Stock market

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lawal, Adedoyin Isola ; Somoye, Russell Olukayode ; Babajide, Abiola ; Ikechukwu Nwanji, Tony
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2018

Further information

• DOI: doi:10.1016/j.fbj.2017.11.004
• Handle: http://hdl.handle.net/10419/187957
• Last update: 10.03.2025, 11:41 AM CET