Tuesday, August 28, 2007

Elections, inflation and the stockmarket

Here's an interesting 2005 piece from British home lender / banker HBOS/Halifax, correlating periods of government with inflation and share prices. The conclusion:

Martin Ellis, chief economist at Halifax, said:

"Although wider economic conditions clearly play a part in the rise and fall of the stock market, election campaigns do appear to have a marked impact on share prices. The three month period preceding any general election traditionally sees large fluctuations in share prices as the market tries to understand the likely outcome of the election."


I haven't yet tried to relate increases in the money supply to General Elections, but it might be an interesting avenue to explore.

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