Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework

This pragmatic study aims to comprehensively examine the underlying impact of economic policy uncertainty (EPU) on both inflation and stock market performance across fifteen major global economies, employing the robust panel Autoregressive Distributed Lag (ARDL) model. The outcome reveals that there...

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Main Author: Mishra Amritkant
Format: Article
Language:English
Published: Sciendo 2024-12-01
Series:Studies in Business and Economics
Subjects:
Online Access:https://doi.org/10.2478/sbe-2024-0050
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author Mishra Amritkant
author_facet Mishra Amritkant
author_sort Mishra Amritkant
collection DOAJ
description This pragmatic study aims to comprehensively examine the underlying impact of economic policy uncertainty (EPU) on both inflation and stock market performance across fifteen major global economies, employing the robust panel Autoregressive Distributed Lag (ARDL) model. The outcome reveals that there is a long-run nexus between the EPU, inflation, and the stock market across fifteen countries. The empirical consequences further show that, in the long run, EPU has an adverse impact on inflation. Additionally, outcomes affirm that the short-run impact of economic policy uncertainty is not uniform across countries. Finally, the result further confirms the positive long-run impact of economic policy uncertainty on the stock market’s performance. The insights gleaned from this study hold valuable implications for policymakers, empowering them to devise more effective and informed policy strategies. Policymakers can effectively leverage these comprehensive findings to design well-targeted measures aimed at mitigating the adverse effects of economic policy uncertainty and fostering economic stability and growth.
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spelling doaj-art-a36ad5609285420b8524b016804ff4912025-02-02T15:49:07ZengSciendoStudies in Business and Economics2344-54162024-12-0119317219010.2478/sbe-2024-0050Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global FrameworkMishra Amritkant01Department of Social Sciences and Humanities, Birla Global University, Bhubaneswar, IndiaThis pragmatic study aims to comprehensively examine the underlying impact of economic policy uncertainty (EPU) on both inflation and stock market performance across fifteen major global economies, employing the robust panel Autoregressive Distributed Lag (ARDL) model. The outcome reveals that there is a long-run nexus between the EPU, inflation, and the stock market across fifteen countries. The empirical consequences further show that, in the long run, EPU has an adverse impact on inflation. Additionally, outcomes affirm that the short-run impact of economic policy uncertainty is not uniform across countries. Finally, the result further confirms the positive long-run impact of economic policy uncertainty on the stock market’s performance. The insights gleaned from this study hold valuable implications for policymakers, empowering them to devise more effective and informed policy strategies. Policymakers can effectively leverage these comprehensive findings to design well-targeted measures aimed at mitigating the adverse effects of economic policy uncertainty and fostering economic stability and growth.https://doi.org/10.2478/sbe-2024-0050economic policy uncertaintyinflationstock market and panel ardl
spellingShingle Mishra Amritkant
Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework
Studies in Business and Economics
economic policy uncertainty
inflation
stock market and panel ardl
title Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework
title_full Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework
title_fullStr Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework
title_full_unstemmed Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework
title_short Do Economic Policy Uncertainty Have Ramifications on Inflation and Stock Market Performance? Evidence from Global Framework
title_sort do economic policy uncertainty have ramifications on inflation and stock market performance evidence from global framework
topic economic policy uncertainty
inflation
stock market and panel ardl
url https://doi.org/10.2478/sbe-2024-0050
work_keys_str_mv AT mishraamritkant doeconomicpolicyuncertaintyhaveramificationsoninflationandstockmarketperformanceevidencefromglobalframework