The Stock Market as a Leading Indicator: An Application of Granger Causality

Authors

Brad Comincioli '95

Abstract

The stock market has traditionally been viewed as an indicator or "predictor" of the economy. Many believe that large decreases in stock prices are reflective of a hture recession, whereas large increases in stock prices suggest future economic growth.

Recommended Citation

Comincioli '95, Brad (1996) "The Stock Market as a Leading Indicator: An Application of Granger Causality," The Park Place Economist: Vol. 4
Available at: https://digitalcommons.iwu.edu/parkplace/vol4/iss1/13