For some time now we have known that what’s good for society tends to be good for its markets too. Or that democracy is good for the markets, China being a big exception. Varieties of Democracy, or V–Dem, a venture of the University of Notre Dame and Sweden’s University of Gothenburg, has validated the broadly held views in a study, using over 150 social and democracy indicators, and stock market data on 173 countries, some going as far back as 1900. “We have documented that, over a five- or ten-year time scale, there has historically been, on average, a consistent…
Study Finds Close Correlation Between Market Returns and Democracy Indicators
Bala Murali Krishna
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