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Effective Investments on Capital Markets pp 53–67Cite as

International Capital Markets and the Global Real Economy

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Abstract

This text focuses on two aspects of the relations between the financial sector and the global real economy. First, it discusses the impact of quantitative easing programs (QE) on the situation on global capital markets. The efficiency of such programs as tools to stimulate economic growth is analyzed and compared across different countries. The author puts forward a hypothesis that the efficiency of QE depends on the capital market model in a given country and the different channels of transferring capital between the financial sector and the real economy. The second aspect of the relations between capital markets and the economy discussed in this article is the problem of market efficiency. The thesis advanced here is that capital market inefficiency not only leads to wrong asset pricing and wealth transfer between investors, but also contributes to the wrong allocation of resources and underinvestment or overinvestment in given real sectors, bringing about significant losses for the entire economy.

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References

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  2. Although the identification of the three forms of informational efficiency mentioned above is often attributed to E. Fama (1970), it should be noted that the classification was suggested a little earlier by H. Roberts (1967) who was the supervisor of E. Fama’s Ph.D. thesis

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Author information

Authors and Affiliations

  1. SGH Warsaw School of Economics, Warsaw, Poland

    Adam Szyszka

Authors
  1. Adam Szyszka
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Correspondence to Adam Szyszka .

Editor information

Editors and Affiliations

  1. Department of Insurance and Capital Markets, University of Szczecin, Szczecin, Poland

    Waldemar Tarczyński

  2. Institute of IT in Management, University of Szczecin, Szczecin, Poland

    Kesra Nermend

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Szyszka, A. (2019). International Capital Markets and the Global Real Economy. In: Tarczyński, W., Nermend, K. (eds) Effective Investments on Capital Markets. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-21274-2_4

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