The Empirical Study on Relationship Between Stock Prices and Inflation

摘要

Background of inflation in 2010, the share price trend of what will be, how should we operate on in the stock market has become a concern, This article conduct a test about the Shanghai index and the stability of the CPI data, then use autoregressive distributed lag model to study the relationship between stock prices and inflation, concluded that the CPI has negative impact on the Shanghai index, and long-term effects than short-term impact. The Shanghai Composite Index on the impact on the CPI is not significant.