تاثیر سیاست پولی بر عملکرد بازار سهام: شواهدی از 12 کشور آفریقا the impact of monetary policy on stock market performance: evidence from twelve (12) african countries

1 INTRODUCTION Economies all over the world operate monetary policy with the main objective to create stable macroeconomic environment for economic prosperity. The achievement of this objective depends on whether or not monetary policy actions permeate the real sector of the economy (Laopodis 2013). Channels through which monetary policy permeates the real sector of the economy are the debt instruments (i.e interest rate) or asserts prices particularly stock prices (Mishkin, 2001). Laopodis (2013) found that monetary actions can propagate the real sector if they are properly transmitted into the macro-economy through the various channels; notably interest rate channel, consumption channel, and wealth effect channel. Most African countries have been plagued with economic challenges over the years, in the face of many, and frequent changes in monetary and other macro-economic policies, raising the question whether monetary policy is making the desired economic impact. Views on whether monetary policy is making economic impact are many and varied. The monetarists strongly believe that monetary policy exact greater impact on economic activity arguing that unanticipated change in the stock of money affects output and growth i.e. the stock of money must increase unexpectedly for central bank to promote economic growth (Adeolu et al, 2012). Patelis, (1997) argues that if monetary policy has real economic impact, then shifts in monetary conditions should affect stock prices, since equities are claims on future economic output. Alan Greenspan (US Fed Chairman: August, 1987- Dec. 2005) addressing the Fund’s Open Market Committee (FOMC) after increasing the Fed Funds rate, advised that Central Bankers should put an eye on the stock market behavior as it reflects the macroeconomic conditions of an economy (Laopodis, 2013).