Influence of Capital Market on the US Unemployment and GDP
Influence of Capital Market on the US Unemployment and GDP

Author(s): Erik Suchý, Michal Šoltés
Subject(s): National Economy, Economic development, Financial Markets, Socio-Economic Research
Published by: Masarykova univerzita nakladatelství
Keywords: capital market; stock market; stocks; unemployment; GDP;
Summary/Abstract: In this paper we analyze the size of the US capital market and its attributes. Following the 2008 economic crisis, many countries’ economies or even whole European Union and US were in recession. Unemployment rate increased, GDP declined and some businesses bankrupted, mainly banks. In order to support economic growth, countries have taken various steps such as quantitative easing, interest rate cuts, investment incentives etc. The US market has recovered from the crisis sooner than rest of the world, even though the trigger for the crisis was in the US. The US economy is considered to be the most developed, as it has a huge banking and capital market. The banking sector or mortgages market to be concrete was the trigger for the crisis, but the capital sector can be considered as a support system in the rebuilding of the US economy. In our paper we deal with the US capital market, which is the largest in the world and supports the US economy and therefore employment, GDP, economic growth, capital inflows and more. The size and usability of the US capital market is unparalleled and therefore its aspects need to be further explored. The European Union has one of the main objectives of building a capital markets union on the US image where capital markets operate at a much better level. For this reason, our research addresses various indicators of the US capital market and their impact on unemployment and GDP in the US.

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