IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Role Of Mutual Funds In U.S. Economy

Listed author(s):
  • Delia-Elena DIACONASU


    (Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, Iasi, Romania)

The main aim of this article is to present the correlations between different macroeconomic indicators and the dynamics of mutual funds in U.S. The direct relationship between inflation rate and net subscription of stock funds in the US market is validated. On the other hand, a lower interest rate in US means investing people’s savings in monetary and bond funds. We have also shown an indirect link between interest rate and bond funds. We couldn’t highlight the direct link between global funds and its balance of payments and the country's GDP. The weak correlation between balance of payments and global funds is due to the fact that in the current account balance are included other financial flows that are much larger and with a greater influence on it, such as imports and exports. Also, the weak correlation between the net assets of global funds and the evolution of GDP is due to influence of other factors that leads to the decision of investing internationally. We have also shown the importance of investment funds by increasing what they hold in total savings of the population. This increase is explained both by placing the weight of massive cash of traders in investment funds and by the existence of a higher utility of personal savings invested in investment funds aimed at saving for retirement. Also we briefly highlighted the role of investment companies in the State unemployment rate.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:,NR.2(14),2011_fulltext.pdf
Download Restriction: no

Article provided by "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration in its journal The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration.

Volume (Year): 11 (2011)
Issue (Month): 2(14) (December)
Pages: 239-244

in new window

Handle: RePEc:scm:ausvfe:v:11:y:2011:i:2(14):p:239-244
Contact details of provider: Postal:
Universitatii 9, 720225; Suceava

Phone: +40 230 522978
Fax: +40 230 216147
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:scm:ausvfe:v:11:y:2011:i:2(14):p:239-244. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liviu Scutariu)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.