ABSTRACT. The theory that we shall seek to elaborate here puts considerable emphasis on the creative energy of financial markets, the dysfunctional aspects of today’s financial markets, social functions of financial markets, the role of information in markets, and the self-reinforcing behavior of stock markets. The goal of the present study is to determine if there are relationships between determinants of stock market developments, the relationship between stock markets and economic activity, the connection between stock prices and the real economy, the growing influence of foreign portfolio decisions on domestic stock markets, and the influence of international capital flows on stock markets. pp. 170–175
JEL: E44, F36, G15
Keywords: financial market, information, capital flow, creative energy