A correlation analysis on stock market returns with personal consumption expenditures, inflation rate and exchange rate to determine the existence and implications of the wealth effect theory as applied in the Philippine setting covering the period 1995-1999

• Main Authors: Bartolome, Ambry, Cardenas, Mary Kristen, Drilon, Janette, Perez, Vivienne Christine
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Stock exchanges > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17051
• Institution: De La Salle University

In the context of the theory of wealth effect, an increase in money supply can lead to an increase in wealth mainly by its effect on stock prices. When there is an increase in money supply, interest rates would decrease. Business firms would then invest in the market. An increase in economic activit...