The reaction of the WIG stock market index to changes in the interest rates on bank deposits

Determination of the relationship between the money market and capital market is particularly important from the point of view of taking a decision on the location of investment capital. It may help to forecast future states. This study seeks to determine the relationship of the interest rate on deposits in zloty with the WIG stock index and the volume of turnover on the Warsaw Stock Exchange. Analysis of correlation and VAR models are used. Analysis of long-term correlation indicates a negative relationship between the interest rate on deposits in banks and the value of the WIG stock-index. However, this may be spurious. The dependence between these variables may be more complex and should rather be seen as short term. It seems that in general the impact of an increase in interest rates on the value of the WIG index is negative in the short term, just as in the long term. In addition, in the short term these variables can move in the same direction. The results obtained in the research are consistent with results obtained for other national markets. This applies in particular to the relatively weak, negative correlation described above.interest rate on deposits, WIG index, correlation, causality

Conditions of agriculture compared to economic growth in selected countries

Purpose: In the past years, agriculture has been undergoing large transformations. It has become more modern, but its share in the GDP growth has been diminishing. The question of the connection between the condition on the agriculture market and the general economic condition seems fundamental. Design/Methodology/Approach: Based on the added value of agriculture and the Gross Domestic Product in 1992-2017 in the United States, Great Britain, France, and Poland, the connection was determined between these variables. Correlative and cointegration research was carried out. Findings: Based on the research results, conclusions may be drawn about a poorer and less stable increase in agriculture in Europe as compared to the United States. Practical Implications: Grounds for the statement were found that disturbances in agriculture may have a negative impact on the entire economy. This is particularly evident in Europe. Hence, it is recommended to examine the current policy of the EU. Originality/value: Research shows how important the implications of a single branch of the economy are for the entire economy. Moreover, it provides grounds for remodeling EU policy towards market deregulation following the US pattern.peer-reviewe