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http://dx.doi.org/10.14400/JDC.2021.19.6.133

Relationship between Stock Market & Housing Market Trends and Liquidity  

Choi, Jeong-Il (Division of Business, SungKyul University)
Publication Information
Journal of Digital Convergence / v.19, no.6, 2021 , pp. 133-141 More about this Journal
Abstract
Governments of each country are actively implementing fiscal expansion policies to recover the real economy after Corona 19. In Korea, the stock market and housing market are greatly affected as liquidity in the market increases due to the implementation of disaster subsidies and welfare policies. The purpose of this study is to analyze the relationship between stock market and housing market trends and liquidity. Data were collected by the Bank of Korea and Kookmin Bank. The analysis period is from January 2000 to December 2020, and monthly data are used. For empirical analysis, the rate of change from the same month of the previous year was calculated for each variable, and numerical analysis, index analysis, and model analysis were performed. As a result of the analysis, it was found that the stock index showed a positive(+) relationship with the house price, while a negative(-) relationship with M2. Previous studies have suggested that, in general, an increase in liquidity affects the stock market and the housing market, and inflation also rises. In this study, it was found that the stock market and the housing market had an effect on each other. However, it was investigated that liquidity showed an inverse relationship with the stock market and had no relationship with the housing market. Through this, this study estimated that there is a time difference in the relationship between liquidity and the stock market & housing market.
Keywords
KOSPI; HPPCI; Total Currency(M2); Consumer Price Index; Industrial Production Growth Rate;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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