Does common stock hedge against inflation in G7 countries? A co-integration analysis
by Noureen Adnan, Qaisar Abbas
J. for Global Business Advancement (JGBA), Vol. 4, No. 1, 2011

Abstract: Inflation shock is always alarming as it can hurt the economy in different ways. The current study examines whether investments in stocks can hedge against inflation in G7 economies. Our empirical analysis is based upon Fisher hypothesis. Unit roots and Engle-Granger tests are applied to examine the stationarity and co-integration. It is found that four countries including UK, France, Germany and Canada has completely hedge against inflation during the sample period. These countries have also shown stability in their consumer price index and stock price index at first difference and found co-integrated.

Online publication date: Tue, 24-May-2011

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for Global Business Advancement (JGBA):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com