Inflation, The Empirical Study Of Relationship Between Economic Growth And Stock Returns

With the constant improvement of the domestic market, the stock has become widely accepted by the public investment products. Investors concern about the stock value changes by itself, at the same time; they also start to pay close attention to the impact of the inflation and economic growth to the stock price movements in the real economy. Firstly, the stock as an investment tool, whether it has fighted against the depreciation of assets caused by inflation risk and economic forecasting or not; secondly, the stock market has whether the real response to economic growth. Therefore, the empirical analysis of the correlation of inflation, economic growth and stock return has a certain economic significance and practice value.This paper firstly introduced the analysis of the theoretical research of the domestic and foreign scholars for the relationship between stock returns rate, inflation rate and economic growth rate, on the basis of the theoretical research, contacting our actual economic situation; this paper carries on the discussion and the analysis for the three existing relations using econometric methods including VAR model, impulse response function and variance decomposition, draw the following conclusions:The inflation rate and stock returns have a positive relation, stock returns is able to withstand the inflation risk and "Fish effect" is applied to the Chinese stock market; The rate of economic growth, inflation rate and stock returns of the three factors under the interference effect was most pronounced; The mutual influence between stock returns and economic growth rates is not significant, stock market does not have a strong economic forecasting; The rate of economic growth and the inflation rate has stabilized to change the same relations, and mutual effect is remarkable, to ensure economic growth, we must pay attention to the maintenance of price stability. The empirical research on the basis of the conclusion, combined with China’s actual economic situation, put forward the related policy suggestions.