IDEAS home Printed from https://ideas.repec.org/a/bis/bisqtr/0008e.html
   My bibliography  Save this article

The co-movement of US stock markets and the dollar

Author

Listed:
  • Henri J Bernard
  • Gabriele E B Galati

Abstract

The relationship between US stock markets and the dollar has been the subject of increased interest recently. In part, this interest reflects the view that portfolio flows may have exerted an important influence on recent movements of the major exchange rates (BIS (2000)). Indeed, while fixed income securities still account for the bulk of cross-border financial transactions, equities markets are playing an increasing role in such transactions. In 1995, cross-border transactions in bonds into and out of the United States amounted to 110% of US GDP, more than five times the corresponding ratio for equity flows. In 1999, cross-border transactions in bonds rose to 126% of US GDP, while transactions in equities tripled and reached 75% of US GDP. From a policy point of view, the interest in this topic reflects in part concerns about the current high valuation of the US stock market and the consequent global deflationary impact should the dollar fall along with that market.

Suggested Citation

  • Henri J Bernard & Gabriele E B Galati, 2000. "The co-movement of US stock markets and the dollar," BIS Quarterly Review, Bank for International Settlements, pages 31-34, August.
    • Handle: RePEc:bis:bisqtr:0008e
    as

    Download full text from publisher

    File URL: https://www.bis.org/publ/r_qt0008e.pdf
    Download Restriction: no
    File URL: https://www.bis.org/publ/r_qt0008e.htm
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mun, Kyung-Chun, 2007. "Volatility and correlation in international stock markets and the role of exchange rate fluctuations," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 17(1), pages 25-41, February.
    2. Mehmet PEKKAYA & Ersin AÇIKGÖZ & Veli YILANCI, 2017. "Panel causality analysis between exchange rates and stock indexes for fragile five," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 33-44, Summer.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bis:bisqtr:0008e. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Beslmeisl (email available below). General contact details of provider: https://edirc.repec.org/data/bisssch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.