International Journal of Education & Applied Sciences Research
Print ISSN : 2349 –4808
Online ISSN : 2349 –2899
Frequency : Continuous
Current Issue : Volume 8 , Issue 1
2021
Dr. Kajal Gandhi
Dr. Kajal Gandhi, Assistant Professor, Department of Commerce, Shri Shikshayatan College, Kolkata, India
DOI : https://doi.org/10.5281/zenodo.14913588 Page No : 33-41
Published Online : 2021-12-30
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The abstract provides a concise overview of the paper, summarizing the key points, methods, and conclusions drawn. This research paper reviews the relationship between the business cycle and stock market volatility, with a focus on literature published until 2021. The business cycle, marked by periods of expansion and recession, plays a significant role in shaping stock market behavior. Stock market volatility refers to fluctuations in asset prices, often linked to economic indicators such as GDP growth, unemployment, inflation, and consumer confidence. This paper synthesizes findings from a wide array of academic literature on the subject, assessing how stock markets respond to various phases of the business cycle. Key findings suggest that stock market volatility tends to be more pronounced during recessions, while periods of expansion often see less volatile behavior. However, factors such as investor sentiment, external shocks (e.g., financial crises or pandemics), and volatility measurement methods complicate this relationship. The paper highlights the limitations of current research, offers suggestions for future studies, and concludes that a deeper understanding of these dynamics is crucial for investors, policymakers, and financial analysts. |
Keywords: Business cycle, Stock market volatility, Economic fluctuations, Financial markets, Market risk, Volatility measures, Economic indicators
